Taiwan Posts $64.86 Billion Q1 Financial-Account Outflow, Extending Record Run to 63 Quarters
The financial account tracks cross-border investment and funding activity by residents and businesses. For Taiwan, which has long maintained a current-account surplus, a net financial-account outflow often reflects an increase in overseas assets and does not necessarily indicate capital flight. The data shed light on the global strategies of life insurers, banks and technology companies while also affecting Taiwan-dollar liquidity and exchange-rate movements.
The central bank said on May 20 that Taiwan recorded a net financial-account outflow of $64.86 billion in the first quarter of 2026, the second-highest quarterly total on record. This marked the 63rd consecutive quarter of net outflows, bringing the cumulative total to $1.08 trillion. Residents’ outward direct investment produced a net outflow of $10.01 billion, while outward portfolio investment increased by $16.17 billion, mainly because banks added overseas bonds and major technology companies invested and managed funds in the United States.
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The history behind this eventTaiwan’s Financial Account Outflows Top $1 Trillion After 62 Quarters
Taiwan has run persistent current-account surpluses as its export-led economy generates more savings than can be absorbed by domestic investment. Residents, insurers, banks and companies have recycled much of that capital into overseas equities, bonds and direct investments, keeping the financial account in net outflow since the third quarter of 2010. The streak matters because it highlights Taiwan’s growing external wealth while underscoring the economy’s exposure to currency moves and global financial markets.
The Central Bank of the Republic of China (Taiwan) said on Feb. 26, 2026, that financial-account outflows reached US$74.86 billion in the fourth quarter of 2025, extending the run to 62 quarters and pushing cumulative outflows above US$1 trillion. Full-year outflows hit a record US$157.16 billion. Strong demand for AI and other emerging technologies lifted the quarterly goods surplus to US$63.64 billion and the current-account surplus to US$69.93 billion, while the annual current-account surplus reached a record US$181.14 billion.
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