BALANCE OF PAYMENTS (Q3 2016)

For the third quarter of 2016, the overall balance of payments registered a current account surplus of US$17.09 billion, an increase of US$14.33 billion in net assets in the financial account, and an increase of US$2.95 billion in the Bank's reserve assets.

I.    Current Account

The current account posted a smaller surplus in the third quarter of 2016, decreasing by US$1.19 billion or 6.5% over the same quarter of the previous year.

1.  The goods trade surplus narrowed by US$0.74 billion year on year to US$17.70 billion. The contraction in exports abated as the demand for semiconductors picked up. Yet, a still wobbly global demand recovery and intensifying international competition have led exports to register a year-on-year decrease of US$5.82 billion. As for imports, weak export-derived demand resulted in a US$5.08 billion decline in imports, compared to the same quarter of the previous year.

2.  The services deficit widened by US$0.55 billion year on year to US$3.70 billion, mainly because of a decrease in travel receipts and an increase in payments for air passenger transportation.

3.  The primary income account surplus rose by US$0.22 billion over the same period last year to US$4.01 billion, mainly reflecting the increase in interest income from bond investment abroad.

4.  The secondary income deficit widened by US$0.12 billion year on year to US$0.92 billion, mainly owing to an increase in workers' outward remittances.

II.    Financial Account

1.  The net assets in direct investment grew by US$4.14 billion. Of the components, residents' direct investment abroad and direct investment by foreign investors registered net increases of US$4.34 billion and US$0.20 billion, respectively.

2.  Portfolio investment exhibited a net increase of US$21.74 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$24.61 billion mainly because insurance companies expanded their investment in debt securities abroad. Non-residents' portfolio investment increased by a net US$2.87 billion as foreign investors stepped up their Taiwanese stock holdings.

3.  Net assets in financial derivatives dropped by US$0.12 billion, mainly because of gains on disposal of financial derivatives received by non-bank financial corporations. 

4.  Net assets in other investment decreased by US$11.43 billion. The main reason is that banks' deposits of non-residents and short-term loans abroad both mounted, leading to a larger built-up in foreign liabilities.

III.    BOP Summary (Q1-Q3, 2016)

For the first three quarters of 2016, the current account registered a surplus of US$54.41 billion, the financial account showed a net asset increase of US$47.29 billion, and the Bank's reserve assets posted an increase of US$9.95 billion.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on February 20, 2017.

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.