jjbn
Taiwan's balance of payments likely to post surplus
8/26/13 7:20 PM
www.ChinaPost.com.tw
Taiwan's balance of payments likely to post surplus
Thursday, August 22, 2013
CNA
TAIPEI--Taiwan is likely to post a surplus in its balance of payments in the second half of the year because of peaking exports during the period, analysts said Wednesday.
They said a recovery in exports in the last six months of 2013 would strengthen Taiwan's current account surplus and help offset financial outflows to keep the country's balance of payments positive.
The balance of payments is comprised of three categories, including the current account, which largely measures merchandise and service transactions, and the financial account, which reflects flows in direct investments and portfolio investments.
The third category is the capital account, which comprises capital transfers and acquisitions/disposals of non-produced, non-financial assets, such as patents and goodwill. The capital account has only a minor effect on the balance of payments because of the relatively limited amounts it involves. Yuanta-Polaris Research Institute President
Liang Kuo-yuan said that although the pace of Taiwan's economic recovery remains slow, growing global demand in the second half should help Taiwan run a trade surplus. Liang said that unless global financial conditions turn sour in the second half of the year and erode global demand, Taiwan's balance of payments should continue to run a surplus.
Liang warned, however, that if the U.S. Federal Reserve begins tapering down its US$85billion-a-month bond buying program later this year, foreign investors may repatriate their funds out of Asia back to their home markets, which would increase the financial account deficit and affect the balance of payments.
Norman Yin, a finance professor of National Chengchi University, agreed, saying that any move by the Fed to tighten its monetary policy would only worsen Taiwan's financial
8/26/13 7:20 PM
www.ChinaPost.com.tw
Taiwan's balance of payments likely to post surplus
Thursday, August 22, 2013
CNA
TAIPEI--Taiwan is likely to post a surplus in its balance of payments in the second half of the year because of peaking exports during the period, analysts said Wednesday.
They said a recovery in exports in the last six months of 2013 would strengthen Taiwan's current account surplus and help offset financial outflows to keep the country's balance of payments positive.
The balance of payments is comprised of three categories, including the current account, which largely measures merchandise and service transactions, and the financial account, which reflects flows in direct investments and portfolio investments.
The third category is the capital account, which comprises capital transfers and acquisitions/disposals of non-produced, non-financial assets, such as patents and goodwill. The capital account has only a minor effect on the balance of payments because of the relatively limited amounts it involves. Yuanta-Polaris Research Institute President
Liang Kuo-yuan said that although the pace of Taiwan's economic recovery remains slow, growing global demand in the second half should help Taiwan run a trade surplus. Liang said that unless global financial conditions turn sour in the second half of the year and erode global demand, Taiwan's balance of payments should continue to run a surplus.
Liang warned, however, that if the U.S. Federal Reserve begins tapering down its US$85billion-a-month bond buying program later this year, foreign investors may repatriate their funds out of Asia back to their home markets, which would increase the financial account deficit and affect the balance of payments.
Norman Yin, a finance professor of National Chengchi University, agreed, saying that any move by the Fed to tighten its monetary policy would only worsen Taiwan's financial