Friday, December 9, 2011

Deficit in Taiwan’s balance of payment

* Taiwan’s overall balance of payments registered its first quarterly deficit—from July to September—in three years as foreign investors reduced their holdings in local stocks and bonds.

* In fact, Taiwan’s balance of payments ran a deficit of US$3.46 billion for the quarter, which was the first since the third quarter of 2008 when the world economy was hit with a global financial meltdown.

* Besides the sovereign debt crisis in Europe, declining exports and investment slowdown were also responsible for the balance of payments deficit, estimated to be US$2.6 billion for the year.

* Although both exports and imports recorded slower growth, Taiwan's trade surplus nevertheless increased roughly by US$800 million year-on-year to US$7.71 billion. However, unless a solution is reached soon to resolve the European debt crisis, the outlook for the fourth quarter this year is not particularly encouraging.

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