Central Bank of the Republic of China (Taiwan)
PRESS RELEASE Release Date: August 20, 2015

BALANCE OF PAYMENTS

For the second quarter of 2015, the overall balance of payments registered a surplus of US$4.17 billion, reflecting an increase in the Bank's reserve assets. The current account ran a surplus of US$16.55 billion, and the financial account posted a net outflow of US$15.30 billion.
In the current account, weak global demand and a decline in international oil prices caused exports to contract by 9.7% over the same quarter last year. Imports decreased by 15.2% year on year, owing to reduced imports of agricultural and industrial raw materials and capital equipment. With a larger decrease in imports than in exports, the goods trade surplus grew to US$13.03 billion, up by US$2.82 billion compared to the same quarter last year.
The surplus on services account shrank by US$0.75 billion year on year to US$1.97 billion, mainly because faster growth in residents' outbound departures led the travel account to turn to a deficit. The income account surplus narrowed to US$2.73 billion, a year-on-year decrease of US$1.26 billion mainly owing to increased outward payments for non-residents' direct investment income. The current transfer deficit widened by US$0.35 billion year on year to US$1.19 billion as a result of an increase in workers' outward remittances.
Overall, the current account surplus grew slightly by US$0.46 billion or 2.8%, as a larger goods trade surplus offset the impact of narrowing surpluses on the services and income accounts and a wider current transfer deficit.
With respect to the financial account, direct and portfolio investments registered net outflows of US$4.24 billion and US$10.40 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$13.52 billion, mainly owing to greater investment in debt securities abroad by insurance companies. Non-residents' portfolio investment posted a net inflow of US$3.13 billion, mainly accounted for by increased foreign investment in Taiwan's stock markets. Financial derivatives recorded a net inflow of US$0.10 billion. Other investment showed a net outflow of US$0.76 billion as banks' deposits with overseas branches increased.
For the first two quarters of 2015, the current account registered a surplus of US$38.57 billion, the financial account showed a net outflow of US$35.74 billion, and the overall balance recorded a surplus of US$7.99 billion, reflecting an increase in the Bank's reserve assets.

Notes:
1. The next balance of payments data will be released at 16:20 p.m. on November 20, 2015.
2. For the release schedule for the upcoming months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.