Taiwan August exports fall less than expected, growth seen resuming

TAIWAN’S exports dropped for the 12th consecutive month in August but less sharply than expected, and may return to growth in September ahead of the year-end holiday shopping season, the finance ministry said on Friday (Sep 8).

August exports dropped 7.3 per cent in value from a year earlier to US$37.36 billion, the ministry said, the smallest decline and first single-digit percentage fall since October. That compared with a 10.4 per cent fall in July and exceeded a Reuters poll forecasting an 8.05 per cent contraction.

Despite the stagnation in exports, a key driver for Taiwan’s economy, the island’s GDP returned to growth in the second quarter, helped by resilient domestic consumption.

The ministry forecast improved export performance in coming months, when orders traditionally pick up ahead of the busy year-end shopping season, which is expected to be driven this year by rising demand for high-performance computing, artificial intelligence, data centres and automotive electronics.

For September, the ministry said exports may expand, predicting a performance ranging from a contraction of 2 per cent to growth of 2 per cent.

In August, total shipments of electronic components fell 11.2 per cent from the year before to US$15.14 billion, with semiconductor exports down 10.4 per cent.

Taiwanese firms such as TSMC, the world’s largest contract chipmaker, are major suppliers to Apple, Nvidia and other global tech giants, while providing chips for auto companies and lower-end consumer goods.

TSMC reported earlier on Friday that August sales fell 13.5 per cent year-on-year.

Taiwan’s exports to China fell 14.1 per cent in August from a year earlier to US$12.98 billion, after the prior month’s drop of 16.3 per cent.

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Exports to the US rose 8.8 per cent in August, after slipping an annual 3.3 per cent in July.

Taiwan’s August imports, often seen as a leading indicator of re-exports of finished products, dropped 22.9 per cent to US$28.77 billion. That compared with economists’ forecasts of a 16.3 per cent fall. REUTERS