BALANCE OF PAYMENTS (Q4 2017)

For the fourth quarter of 2017, the overall balance of payments recorded a current account surplus of US$26.58 billion, an increase of US$21.06 billion in net assets on the financial account, and an increase of US$4.02 billion in the Bank's reserve assets.

I.    Current Account

The current account surplus widened by US$7.06 billion or 36.2% over the same quarter of the previous year.

1.  The goods trade surplus increased by US$4.03 billion year on year to US$23.22 billion. The global upswing in economic activity and rising demand for electronics products in the peak season have led exports to register a year-on-year increase of US$10.73 billion. Imports also expanded by US$6.71 billion as export-derived demand strengthened and international raw material prices remained at high levels.

2.  The services deficit shrank by US$0.89 billion year on year to US$1.26 billion, mainly because of a decrease in payments for charges for the use of intellectual property.

3.  The primary income account surplus grew by US$2.1 billion over the same period last year to US$5.37 billion, mostly reflecting the increase in residents' direct investment income.

4.  The secondary income deficit narrowed by US$0.05 billion year on year to US$0.76 billion, mainly owing to an increase in income from trade penalties.

II.   Financial Account

1.  The net assets in direct investment grew by US$1.56 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$2.09 billion and US$0.53 billion, respectively.

2.  Portfolio investment exhibited a net increase of US$14.33 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$16.21 billion, mainly because insurance companies expanded their investment in debt securities abroad. Non-residents' portfolio investment showed a net increase of US$1.89 billion as foreign investors boosted their holdings of Taiwanese stocks.

3.  Net assets in financial derivatives dropped by US$1.46 billion, mainly attributable to gains on disposal of financial derivatives received by other financial corporations.

4.  Other investment posted a net asset increase of US$6.64 billion, mainly because banks' deposits with overseas branches rose.

III. BOP Summary (Q1-Q4, 2017)

For the year of 2017 as a whole, the current account registered a surplus of US$84.09 billion, the financial account showed a net asset increase of US$68.64 billion, and the Bank's reserve assets posted an increase of US$12.47 billion.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on May 21, 2018.

2. For the release schedule for the coming months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.