Taiwan exports plunge at fastest pace in 14 years on demand woes
TAIWAN’S exports plunged in June at the fastest pace since 2009, exacerbating concerns about the slump in global demand for electronics and its impact on the economy.
Overseas shipments plummeted 23.4 per cent to US$32.3 billion last month compared to a year earlier, the Ministry of Finance said on Friday (Jul 7). That was far worse than expectations of a 13.5 per cent decline in a Bloomberg survey of economists, and was much more severe than the 14.1 per cent fall recorded in May.
It also marked the fastest pace of declines since August 2009.
Imports dropped 29.9 per cent from a year earlier, following a 21.7 per cent tumble in May. The economy’s trade balance was nearly US$6 billion.
Taiwan, which is export-dependant, has struggled with lacklustre overseas appetite for technological goods – including for semiconductors, a key product.
“The demand for integrated circuits continues to be weak,” the finance ministry said in a statement accompanying the data.
The ministry also cited inflation and interest-rate hikes that have meant a stagnation of the global economy, as well as a high base of comparison with last year.
The demand problem seems to be improving elsewhere. South Korea in June registered its first trade surplus in 16 months, although exports still declined in the month. BLOOMBERG
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