BALANCE OF PAYMENTS (Q3 2017)

For the third quarter of 2017, the overall balance of payments registered a current account surplus of US$20.51 billion, an increase of US$16.93 billion in net assets on the financial account, and an increase of US$3.93 billion in the Bank's reserve assets.

I.   Current Account

The current account posted a larger surplus in Q3, increasing by US$4.27 billion or 26.3% over the same quarter of the previous year.

1.  The goods trade surplus widened by US$5.89 billion year on year to US$22.90 billion. Boosted by a global economic pickup and strong demand for semiconductors, exports rose by US$14.02 billion. Meanwhile, higher export-derived demand and rising international raw material prices led imports to increase US$8.13 billion year on year.

2.  The services deficit narrowed to US$3.65 billion, reflecting a US$0.12 billion decrease mainly accounted for by higher proceeds from freight services.

3.  The primary income account surplus shrank by US$1.38 billion over the same period last year to US$2.53 billion, mainly owing to increased payments for non-residents' equity dividend income.

4.  The secondary income deficit widened by US$0.35 billion year on year to US$1.27 billion, mainly as a result of an increase in gift transfers to non-residents.

II.   Financial Account

In the third quarter of 2017, the financial account posted a net asset increase of US$16.93 billion.

1.  The net assets in direct investment grew by US$1.96 billion. Of the components, residents' direct investment abroad and direct investment by foreign investors registered net increases of US$3.08 billion and US$1.12 billion, respectively.

2.  Portfolio investment exhibited a net increase of US$33.27 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$22.97 billion mainly because insurance companies expanded their investment in debt securities abroad. Meanwhile, non-residents' portfolio investment declined by a net US$10.31 billion as foreign investors cut back on their Taiwanese stock holdings.

3.  Net assets in financial derivatives decreased by US$1.19 billion, mainly as a result of gains on disposal of financial derivatives received by non-bank financial corporations. 

4.  Net assets in other investment decreased by US$17.11 billion, mainly attributable to bank borrowings from overseas branches. 

III.   BOP Summary (Q1-Q3, 2017)

For the first three quarters of 2017, the current account registered a surplus of US$54.64 billion, the financial account showed a net asset increase of US$45.16 billion, and the Bank's reserve assets posted an increase of US$8.45 billion.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on February 23, 2018.

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.