The nation’s current-account surplus in the second quarter fell 1 percent from a year earlier to US$17.56 billion, as exports took a hit from a lingering US-China trade dispute and cheaper raw material prices, the central bank said while releasing the latest balance of payment data yesterday.
The figures summarized the nation’s transactions with the rest of the world during the April-to-June period, covering movements of goods, services and income by residents and foreigners.
Exports shrank 2.6 percent in the quarter, while imports rose 0.9 percent on the back of capital equipment purchases by local semiconductor firms in a bid to maintain global technology leadership.
The travel deficit tapered to US$1.03 billion as tourist numbers gained 19 percent, thanks to double-digit percentage growth in visitors from China, Hong Kong, Japan, South Korea and other Asian nations, the central bank said.
Tourist spending picked up 10 percent, especially among Chinese and Japanese, it added.
The trend might reverse after Beijing introduced restrictions on solo travelers to Taiwan ahead of the presidential election in January, although the government’s domestic travel subsidies might help ease the pinch, the bank said.
Daily tourism spending averaged US$191.7 per visitor last year, while Chinese tourists spent an average of US$211.68 per day.
The financial account, which captures fund movements by financial institutions, saw a net capital outflow for the 36th consecutive quarter, signaling that local mutual funds and insurance companies increased holdings in foreign securities, the bank said.
Capital outflows are common in economies with trade surpluses, as financial institutions park surplus liquidity in overseas markets to pursue higher yields, it said.
Foreign portfolio managers cut holdings in local shares by US$290 million on concerns that trade frictions and geopolitical risks are eroding corporate profits.
The local bourse has been relatively resilient and would receive support from capital repatriation, the bank added.
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