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.
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