BALANCE OF PAYMENTS (Q2 2018)

For the second quarter of 2018, the overall balance of payments recorded a current account surplus of US$17.82 billion, a net asset increase of US$12.64 billion on the financial account, and an increase of US$2.16 billion in the Bank's reserve assets.

I.       Current Account

The current account surplus rose by US$0.48 billion or 2.8% over the same quarter of the previous year.

1.  The goods trade surplus widened by US$1.91 billion to US$19.41 billion compared to the same period of last year. Exports increased by US$7.07 billion year on year, bolstered by steady global economic growth and a continued rise in demand for electronic parts and components related to emerging technology applications. Meanwhile, imports grew by US$5.16 billion, mainly because of stronger export-derived demand and elevated price levels of international raw materials.

2.  The services deficit slightly narrowed by US$2 million year on year to US$2.26 billion, mainly owing to an increase in receipts from professional and management consulting services.

3.  The primary income account registered a US$1.38 billion surplus, decreasing by US$1.79 billion mainly as a result of an increase in nonresidents' direct investment income.

4.  The secondary income deficit shrank by US$0.36 billion year on year to US$0.71 billion, mainly because of an increase in income from insurance claims.

II.    Financial Account

1.  The direct investment account registered a net asset decrease of US$0.79 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$2.37 billion and US$3.16 billion, respectively.

2.  Portfolio investment exhibited a net asset increase of US$21.88 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$15.39 billion mainly as insurance companies expanded their investment in debt securities abroad. Non-residents' portfolio investment showed a net decrease of US$6.49 billion as foreign investors pared down local stock holdings.

3.  Financial derivatives posted a net asset decrease of US$1.93 billion mainly because of gains on disposal of financial derivatives received by other financial corporations. 

4.  Other investment recorded a net asset decrease of US$6.52 billion, mainly attributable to bank borrowings from overseas branches.

III.  Balance of Payments Summary (Q1-Q2 2018)

For the first two quarters of 2018, the current account registered a surplus of US$37.17 billion, the financial account showed a net asset increase of US$28.32 billion, and the Bank's reserve assets posted an increase of US$6.92 billion.

Notes:

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