The nation’s balance of payments registered a current account surplus of US$34.4 billion in the fourth quarter last year, on the back of strong global demand for electronic components to build artificial intelligence applications, the central bank said yesterday.
The balance of payments captures transactions with foreign entities and the data are commonly used as a reference for monetary policymaking.
The surplus in the current account — which records exports and imports of goods and services, as well as international transfers of capital — dropped US$240 million from a year earlier, as local firms increased purchases of raw materials and capital equipment from overseas to meet export needs, the central bank said.
Photo: George Tsorng, Taipei Times
The nation registered a service account deficit of US$1.99 billion in the fourth quarter, as Taiwanese traveled abroad, especially to Japan, the central bank said.
For the whole of last year, the current account surplus was US$113.83 billion, the second-highest in history, while travel deficits soared to a new high of US$10.4 billion, it said.
Direct investment under the financial account was the highest on record, reflecting keen overseas investment on the part of local manufacturers and Taiwanese investors, the central bank said.
Local technology firms have expanded their footprints in the US, Mexico, Japan and elsewhere in line with global supply chain realignments, the central bank said, adding that local investors have raised stakes in US dollar-based investment tools in pursuit of better returns.
The central bank said it is common for economies with current account surpluses to see capital outflows.
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
The Taipei International Cycle Show (Taipei Cycle) yesterday opened at the Taipei Nangang Exhibition Center, with the event’s organizer expecting a steady recovery in the industry this year following a tough last year. This year, 980 companies from 35 countries are participating in the annual bicycle trade show, showcasing technological breakthroughs and market development trends of the bicycle industry at 3,600 booths, the Taiwan External Trade Development Council (TAITRA, 外貿協會) said in a statement. Under the theme “Ride the Revolution,” the exhibition has attracted more than 3,500 international buyers from 80 countries to preregister for the four-day event, which is expected to
RSS