BALANCE OF PAYMENTS

For the fourth quarter of 2015, the overall balance of payments recorded a surplus of US$1.34 billion, reflecting an increase in the Bank's reserve assets. The current account registered a surplus of US$20.01 billion and the financial account showed a net outflow of US$22.04 billion.

In the current account, export growth contracted by 13.5% over the same period last year, dampened by a weak global economy, plunging international oil prices, and a continued drawdown in electronics inventory. Imports decreased by 16.0% year on year, owing to a decline in imports of agricultural and industrial raw material amid low oil prices and weak export-derived demand. With a larger decline in exports than that in imports, the goods trade surplus amounted to US$13.81 billion, decreasing by US$0.19 billion from the same period of the previous year.

The services account surplus shrank by US$0.42 billion year on year to US$2.58 billion, mainly because of a decrease in international freight proceeds of Taiwan's companies and net proceeds from merchanting. The income account surplus reached US$4.29 billion with a year-on-year increase of US$1.68 billion, mainly owing to a reduction in payments for non-residents' direct investment income. The current transfers deficit was US$0.67 billion, edging down slightly by US$0.07 billion year on year.

Overall, the current account surplus in the fourth quarter of 2015 grew by US$1.14 billion or 6.0% year on year, as a wider surplus on the income account, as well as a smaller current transfer deficit, more than offset the contraction in surpluses on the goods trade balance and the services account.

In the financial account, direct and portfolio investment posted net outflows of US$2.97 billion and US$14.87 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$14.45 billion, mainly resulting from higher investment in foreign debt securities by insurance companies. Non-residents' portfolio investment recorded a net outflow of US$0.41 billion, mainly because foreign investors trimmed their Taiwanese bond holdings. Financial derivatives posted a net inflow of US$0.48 billion while other investment showed a net outflow of US$4.68 billion as banks increased repayments for short-term borrowings from their overseas branches and foreign banks.

For the year of 2015 as a whole, the current account registered a surplus of US$76.17 billion, the financial account posted a net outflow of US$68.04 billion, and the overall balance recorded a surplus of US$15.01 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 May 20, 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.