Taiwan's Financial Account Sees Record Net Outflow of US$41.16B. in 2013

Taiwan's financial account witnessed a net outflow of US$41.16 billion in 2013, the highest on record and breaking US$40 billion for the first time, according to the statistics released by the central bank.

In the same year Taiwan's current account registered a surplus of US$57.38 billion, also the highest of its kind, suggesting good performance in foreign  trade.

Last year was the fourth consecutive year for Taiwan to experience net outflow in financial account and such outflow in the last 14 quarters accumulated to US$113.49 billion or about NT$3.45 trillion.

Financial account usually reflects the flow of investment capital including direct investment (to set up plants) and indirect investment (to  purchase securities and bonds) abroad and in Taiwan.

In the fourth quarter of 2013 the net outflow of financial account hit a quarterly high of US$13.88 billion, US$9.77 billion of which being launched in overseas stock market by Taiwanese and such investment for the full year in 2013 expanded to US$37.18 billion for the fifth consecutive year of net outflow. In the last five years the total outflow of capital invested in securities overseas amounted to US$162.8 billion or near NT$4.88 trillion.

In the same year the direct investment in Taiwan by foreigners reached US$4 billion, a new high of its kind since 2008 and the direct investment abroad by Taiwanese also hit a record high of US$14.34 billion for the year.

In contrast, South Korea had net outflow of US$57.9 billion in financial account in 2013 and Germany saw the corresponding outflow of US$324.9 billion. (JL)