The nation’s current-account surplus hit a record-high US$12.99 billion in the first quarter, while the capital account showed a net outflow of US$1.7 billion, compared with a net inflow of US$2.5 billion in the fourth quarter, the central bank said yesterday.
Dawn Chen (陳一端), deputy chief of the central bank’s economic research department, attributed the current-account surplus to a sharper decline in imports than in exports in the first three months of the year.
“Exports shrank 36.6 percent in the first quarter, while imports shrank 47.2 percent, raising the trade surplus to US$9.04 billion from US$4.27 billion a year earlier,” Chen told a media briefing.
The higher current-account surplus was partly the result of a smaller deficit in transfer payments, which reflected decreasing outward remittances to support overseas families, Citigroup Taiwan economist Cheng Cheng-mount (鄭貞茂) said.
“We think the current-account surplus will likely continue to grow in coming quarters as the contraction in imports continues to outpace export contraction,” Cheng said.
The capital, or financial, account, however, posted a net outflow despite net inflow of US$9.64 billion in the private sector.
“The deficit in the financial account was due to outflows in both direct and portfolio investments,” Cheng said.
But with recent money inflows, Cheng expected the financial account to improve, as both locals and foreigners expect net portfolio inflows in coming quarters.
The latest central bank data showed continued capital repatriation by individuals and companies, following cross-strait deregulation and a cut in the inheritance tax, but the pace of capital inflow decelerated in the first quarter compared with US$12.7 billion in the fourth quarter.
Chen said she expected better data in the second quarter in light of a recent equity rally. She also said national travel spending had dropped, perhaps because of direct cross-strait flights.
The official said that foreign visits dropped 9 percent in the first quarter but travel spending sank 34.5 percent in the same period.
Meanwhile, travel income rose 17 percent with the monetary regulator attributing the boost to arrival of Chinese tourists.
ADDITIONAL REPORTING BY KEVIN CHEN
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS