BALANCE OF PAYMENTS (Q1 2018)

For the first quarter of 2018, the overall balance of payments registered a current account surplus of US$20.08 billion, a net asset increase of US$16.42 billion in the financial account, and an increase of US$4.76 billion in the Bank's reserve assets.

I.       Current Account

The current account surplus widened by US$1.90 billion, or 10.4%, over the same quarter of the previous year.

1.  The goods trade surplus grew by US$0.66 billion year on year to US$17.35 billion. Exports increased by US$5.89 billion on the back of a global economic pickup and stronger demand for electronic parts and components driven by emerging technology applications. Imports also rose by US$5.23 billion because export-derived demand strengthened and international raw material prices trended up.

2.  The services deficit narrowed by US$0.48 billion year on year to US$1.50 billion, mainly owing to increased travel receipts.

3.  The primary income account posted a larger surplus of US$5.14 billion, growing by US$0.66 billion mainly because of an increase in residents' direct investment income.

4.  The secondary income deficit shrank by US$0.10 billion to US$0.90 billion mainly owing to a rise in inward remittances to residents from their relatives overseas.

II.     Financial Account

1.  The direct investment account registered a net asset increase of US$1.80 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$3.80 billion and US$2.00 billion, respectively.

2.  Portfolio investment exhibited a net asset increase of US$27.64 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$28.91 billion mainly because insurance companies expanded their investment in debt securities abroad. Nonresidents' portfolio investment showed a net increase of US$1.27 billion as foreign investors raised their local stock holdings.

3.  Financial derivatives posted a net asset decrease of US$2.69 billion, mainly attributable to gains on disposal of financial derivatives received by other financial institutions.

4.  Other investment recorded a net asset decrease of US$10.34 billion, mainly accounted for by foreign borrowing by the banking sector.

Notes:

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