Taiwan’s February exports slowed after growing at its fastest pace in almost two years, reflective of a seasonal ebb in demand and a pause in productivity for the Chinese Lunar New Year holidays.

Exports rose 1.3 per cent from a year earlier to a value of US$31.43 billion, the finance ministry said on Friday (Mar 8), compared with 1.1 per cent growth forecast in a Reuters poll and a precipitous drop from an 18.1 per cent gain in January.

“Overall exports slowed as there were fewer working days due to the new year holidays,” the ministry said. “Even so, February exports jumped by US$390 million on year as demand for new applications such as AI and high-performance computing has continued to grow.”

While the island’s exports typically wane with the Lunar New Year, the seasonal slowdown hinders a recovery that had only just begun in late 2023 after a decline that persisted for more than a year.

The week-long Lunar New Year holiday this year took place in February.

Looking ahead, the ministry forecasts exports would rise between 9 per cent and 13 per cent in March on year, adding that first-quarter exports would grow between 9.5 per cent and 10.9 per cent on year.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Weak global demand weighed on Taiwan last year with the export-driven economy growing at its slowest pace in 14 years.

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

In February, Taiwan’s total shipments of electronic components fell 10.4 per cent from a year earlier to $11.59 billion, with semiconductor exports down 9.9 per cent.

Exports to the United States jumped 50.5 per cent, versus 56.6 per cent growth in January.

Exports to China in February slumped 16.7 per cent from a year earlier to US$9.166 billion, as demand shrank after the prior month’s gain of 17.2 per cent.

Taiwan’s imports, often seen as a leading indicator of re-exports of finished products, shed 17.8 per cent to US$23.55 billion in February. That compared with economists’ forecasts for a 2.5 per cent dip. REUTERS