BALANCE OF PAYMENTS

For the third quarter of 2015, the overall balance of payments recorded a surplus of US$5.69 billion, reflecting an increase in the Bank's reserve assets. The current account posted a surplus of US$19.67 billion and the financial account showed a net outflow of US$16.15 billion.

In the current account, export growth contracted by 13.8% over the same period last year, dampened by a sluggish global economic recovery, a continued slump in international oil prices, and slack in electronics inventory drawdown. Imports decreased by 21.4% year on year, owing to a decline in imports of agricultural and industrial raw materials amid low oil prices and weak export-derived demand. With a larger decline in imports than that in exports, the goods trade surplus amounted to US$14.26 billion, expanding by US$3.98 billion from the same period of the previous year.

The services account surplus shrank by US$0.24 billion year on year to US$2.25 billion, mainly because of a decrease in international freight proceeds of Taiwan's companies. The income account surplus reached US$3.97 billion with a year-on-year increase of US$0.73 billion, mainly owing to a reduction in outward payments for non-residents' direct investment income. The current transfers deficit was US$0.81 billion, edging down slightly by US$0.04 billion year on year.

In sum, wider surpluses on the goods trade balance and the income account, as well as a smaller current transfer deficit, more than offset the contraction in service account surplus. Overall, the current account ran a larger surplus in the third quarter of 2015, expanding by US$4.51 billion or 29.8% year on year.

In the financial account, direct and portfolio investment posted net outflows of US$3.32 billion and US$22.66 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$14.13 billion, mainly resulting from higher investment in foreign debt securities by insurance companies. Non-residents' portfolio investment recorded a net outflow of US$8.53 billion, mainly because foreign investors trimmed their Taiwanese stock and bond holdings. Financial derivatives posted a net outflow of US$1.21 billion while other investment showed a net inflow of US$11.04 billion as banks' deposits with overseas branches decreased.

For the first three quarters of 2015, the current account registered a surplus of US$58.06 billion, the financial account posted a net outflow of US$50.79 billion, and the overall balance recorded a surplus of US$13.67 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 February 23, 2016.

2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.