BALANCE OF PAYMENTS (Q2 2017)

For the second quarter of 2017, the overall balance of payments recorded a current account surplus of US$17.65 billion, a net asset increase of US$14.58 billion on the financial account, and an increase of US$2.08 billion in the Bank's reserve assets.

I.    Current Account

The current account surplus rose by US$0.68 billion or 4.0% over the same quarter of the previous year.

1.  The goods trade surplus widened by US$0.97 billion to US$18.28 billion compared to the same period of last year. A continued global economic recovery, steady demand for semiconductors, and a lower base effect combined to drive export growth higher by US$8.05 billion year on year. Imports also grew by US$7.07 billion, mainly because of stronger export-derived demand and larger international raw material price rises due to a lower base comparison from a year earlier.

2.  The services deficit widened by US$0.14 billion year on year to US$2.91 billion, mainly owing to a decrease in travel receipts as well as an increase in travel payments.

3.  The primary income account registered a US$3.31 billion surplus with a modest increase of around US$2 million, mainly owing to an increase in banks' interest income.

4.  The secondary income deficit widened by US$0.16 billion year on year  to US$1.04 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$3.32 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$4.01 billion and US$0.69 billion, respectively.

2.  Portfolio investment exhibited a net asset increase of US$4.71 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$8.98 billion mainly because insurance companies expanded their investment in debt securities abroad. Non-residents' portfolio investment showed a net increase of US$4.26 billion as foreign investors built up stock holdings in the local stock markets.

3.  Financial derivatives posted a net asset decrease of US$0.11 billion mainly as a result of gains on disposal of financial derivatives received by other financial corporations. 

4.  Other investment recorded a net asset increase of US$6.66 billion, mainly because banks with ample foreign currency liquidity increased repayments for foreign borrowings.

III.  Balance of Payments Summary (Q1-Q2 2017)

For the first two quarters of 2017, the current account registered a surplus of US$34.98 billion, the financial account showed a net asset increase of US$28.59 billion, and the Bank's reserve assets posted an increase of US$4.52 billion.

Notes:

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