Taiwan Current Account Surplus Narrows Slightly in Q1

Taiwan’s current account surplus widened to USD 45.84 billion in the third quarter of 2025 from USD 25.08 billion in the same period a year earlier, marking a new record high. The goods trade surplus climbed to USD 49.83 billion from USD 27.93 billion, driven by higher exports amid strong momentum in AI and other emerging technologies, as well as rising demand for new electronics products. Additionally, the primary income surplus increased to USD 2.64 billion from USD 2.14 billion, reflecting higher returns on residents’ outward direct investment. In contrast, the services deficit rose slightly to USD 4.08 billion from USD 3.90 billion due to increased travel spending and lower freight service receipts. The secondary income deficit also expanded to USD 2.54 billion from USD 1.08 billion, mainly because of an increase in outward workers' remittances.

Taiwan’s current account surplus widened to USD 36.23 billion in Q2 2025, the highest level since records began in 1981, compared with a revised USD 23.16 billion in the same period last year. The goods trade surplus expanded to USD 36.18 billion from USD 21.14 billion, mainly supported by rising demand for emerging technology applications and inventory front-loading by overseas firms. Meanwhile, the services account deficit widened slightly to USD 4.27 billion from USD 4.22 billion, primarily due to higher construction expenditures. The primary income surplus also shrank to USD 6.32 billion from USD 7.32 billion, reflecting a decrease in residents’ income from outward direct investment, while the secondary income deficit increased to USD 2.00 billion from USD 1.09 billion, largely owing to higher workers’ outward remittances.

Taiwan’s current account surplus edged down to USD 30.23 billion in Q1 2025, compared with an upwardly revised USD 30.53 billion in the same period last year. The services deficit increased to USD 2.98 billion from USD 2.25 billion, primarily due to an increase in travel expenditures. The primary income surplus narrowed to USD 6.95 billion from USD 9.46 billion, largely due to a decline in income from residents’ outward direct investment. In contrast, the goods surplus widened to USD 27.23 billion from USD 24.53 billion, primarily driven by robust demand for emerging technology applications and early order placements by foreign firms, which helped boost exports. Also, the secondary income deficit narrowed to USD 0.98 billion, down from USD 1.21 billion.