BALANCE OF PAYMENTS (Q1 2017)

For the first quarter of 2017, the overall balance of payments registered a current account surplus of US$16.39 billion, a net asset increase of US$13.89 billion on the financial account, and an increase of US$2.43 billion in the Bank's reserve assets.

I.       Current Account

The current account surplus narrowed by US$3.19 billion or 16.3% over the same quarter of the previous year.

1.  The goods trade surplus shrank by US$1.43 billion year on year to US$15.76 billion. Exports grew by US$5.30 billion, bolstered by thriving demand for semiconductors and a lower base effect. Imports also rose by US$6.73 billion as export-derived demand strengthened and international raw material prices trended up.

2.  The services deficit widened by US$0.37 billion year on year to US$2.68 billion, mainly owing to decreased travel receipts.

3.  The primary income account posted a smaller surplus of US$4.37 billion, a US$0.87 billion decline owing mainly to an increase in payments to non-residents' portfolio investment income.

4.  The secondary income deficit widened by US$0.51 billion to US$1.06 billion mainly because of increases in workers' outward remittances and in residents' remittances to overseas relatives.

II.     Financial Account

1.  The direct investment account registered a net asset increase of US$1.72 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$2.64 billion and US$0.93 billion, respectively.

2.  Portfolio investment exhibited a net asset increase of US$26.12 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$34.17 billion mainly because insurance companies expanded their investment in debt securities abroad. Non-residents' portfolio investment showed a net increase of US$8.04 billion as foreign investors boosted their holdings of Taiwanese stocks.

3.  Financial derivatives posted a net asset decrease of US$0.93 billion, mainly because of gains on disposal of financial derivatives received by banks and other financial corporations. 

4.  Other investment recorded a net asset decrease of US$13.02 billion, mainly owing to an increase in trade credit received by the private sector as well as foreign borrowing by the banking sector.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on August 21, 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.