BALANCE OF PAYMENTS (Q3 2018)

For the third quarter of 2018, the overall balance of payments recorded a current account surplus of US$14.04 billion, an increase of US$7.83 billion in net assets on the financial account and an increase of US$3.36 billion in the Bank's reserve assets.

I.   Current Account

The current account posted a smaller surplus in Q3, decreasing by US$7.67 billion or 35.3% over the same quarter of the previous year.

1.  The goods trade surplus declined by US$7.44 billion year on year to US$16.30 billion. Though bolstered by robust growth in the global economy, exports only widened by US$2.92 billion over the same period of the previous year owing to a higher base effect. Imports registered a year-on-year increase of US$10.37 billion resulting from rising international oil prices, increased export-derived demand, and an uptick in semiconductor equipment investment.

2.  The services deficit shrank by US$0.47 billion year on year to US$2.42 billion, mainly because of an increase in travel receipts.

3.  The primary income account surplus contracted by US$1.13 billion over the same period last year to US$1.00 billion, mostly reflecting increased payments for non-residents' portfolio investment income.

4.  The secondary income deficit narrowed by US$0.43 billion year on year to US$0.84 billion mainly as a result of a decrease in workers' outward remittances.

II.  Financial Account

1.  The net assets in direct investment grew by US$3.97 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$4.46 billion and US$0.49 billion, respectively.

2.  Portfolio investment posted a net asset increase of US$15.14 billion. Of the components, residents' portfolio investment abroad registered a net increase of US$11.57 billion mainly because insurance companies expanded their investment in debt securities abroad. Meanwhile, non-residents' portfolio investment declined by a net US$3.57 billion as foreign investors cut back on their Taiwanese stock holdings.

3.  Net assets in financial derivatives dropped by US$1.07 billion, mainly attributable to gains on disposal of financial derivatives received by other financial corporations.

4.  Net assets in other investment fell by US$10.21 billion mainly because banks' deposits with overseas branches reduced.

III. BOP Summary (Q1-Q3, 2018)

For the first three quarters of 2018, the current account showed a surplus of US$50.06 billion, the financial account registered a net asset increase of US$34.47 billion, and the Bank's reserve assets recorded an increase of US$10.28 billion.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on February 22, 2019.

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.