Taiwan Current Account Surplus Widens in Q2

Taiwan’s current account surplus widened to USD 58.49 billion in the second quarter of 2026 from USD 37.20 billion in the corresponding period of the previous year. The increase was primarily driven by a larger goods trade surplus, which rose to USD 52.76 billion from USD 37.26 billion, as exports expanded amid sustained demand for emerging technology applications. The primary income surplus also widened to USD 9.71 billion from USD 6.37 billion, reflecting higher investment income from residents' overseas investments. Meanwhile, the services deficit narrowed to USD 2.53 billion from USD 4.43 billion, due to lower construction-related expenditures and higher receipts from computer and information services. The secondary income deficit also narrowed to USD 1.44 billion from USD 2.00 billion, mainly due to higher receipts from gifts and samples.

Taiwan’s current account surplus more than doubled to USD 62.53 billion in the first quarter of 2026, up from USD 29.69 billion in the same period a year earlier. The sharp increase was primarily driven by a shap increase of the goods trade surplus to USD 58.01 billion from USD 27.04 billion, supported by strong demand for emerging technologies and exports. The primary income surplus also widened to USD 9.22 billion from USD 6.86 billion, largely reflecting higher income from residents’ direct investments abroad. In contrast, the services deficit expanded to USD 3.42 billion from USD 3.08 billion, amid increased travel-related spending, while the secondary income deficit widened to USD 1.27 billion from USD 1.14 billion, reflecting an increase in remittances sent abroad by foreign workers.

Taiwan posted a current account surplus of USD 69.93 billion in the fourth quarter of 2025, more than doubling from USD 33.91 billion in the corresponding quarter in the previous year. This was the largest amount since records began in 1981. The goods trade surplus increased sharply to USD 63.64 billion from USD 25.75 billion a year ago, largely due to strong export growth supported by sustained momentum in AI and other emerging technologies. On the other hand, the services deficit rose to USD 2.47 billion from USD 1.82 billion, reflecting lower freight service receipts by resident carriers and higher travel-related spending. In addition, the primary income surplus narrowed to USD 10.59 billion from USD 11.35 billion last year, amid increased outward payments for nonresidents’ direct investment income. The secondary income deficit also widened to USD 1.83 billion from USD 1.37 billion, due to higher outward workers’ remittances.