The nation's exports rose in April for the first time in 14 months as demand for computer chips and other electronic goods rebounded and manufacturers sent more parts to factories in China for assembly.
Exports rose 0.3 percent from a year earlier to US$10.9 billion, the government said. That followed March's 2.3 percent decline and lagged the 3.2 percent increase economists expected.
Companies such as Au Optronics Corp (
"Companies are ramping up production and building up their inventories," said Damian Gilhawley, an economist at KGI Securities Co (中信證券). "The key problem is whether the demand is still going to come through down the road, especially with concerns about the sustainability of the US recovery."
The government is counting on a revival in exports to pull the nation out of its worst recession on record. Rising overseas sales will probably help the economy grow 2.3 percent this year, reversing last year's 1.9 percent drop, the government estimates.
The government will probably raise its 1 percent export growth forecast for this year when it announces first-quarter gross domestic product on May 17, said Hsu Kuo-chung (許國忠), statistics director at the Ministry of Finance.
Still, a flagging US rebound may damp demand for Taiwan-made goods. Consumer confidence in the world's largest economy fell in April as higher energy costs and a falling stock market trimmed optimism about economic growth. Economists expect growth to slow to a 3.4 percent annual pace this quarter from 5.8 percent in the first quarter.
Exports may also be hurt by the nation's worst drought in a decade, which could force semiconductor manufacturers and high-technology companies to cut production and shut plants, Hsu said.
Imports fell 7.2 percent from a year earlier to US$9.7 billion as domestic demand flagged and a stronger currency prompted companies to delay purchases. That compares with expectations of a 6.5 percent drop and follows a 1.8 percent decline in March. Hsu said the government may also raise its 1.5 percent import growth forecast for this year.
The nation had a US$1.12 billion trade surplus last month, compared with a US$333.8 million surplus a year earlier, yesterday's report showed.
Exports of electronics, which make up the biggest share of the total, rose 3.1 percent in April from a year earlier, the report showed.
Shipments of electrical products such as mobile-phone components surged 41.8 percent, while sales of mobile phones and other telecommunications goods dropped 2.6 percent.
Shipments to Hong Kong rose 6.9 percent, making up the biggest share of the total. Most Taiwan-made goods bound for China pass through Hong Kong since direct transportation links with China are banned.
Sales to customers in the US fell 6.4 percent. Exports to Japan fell 13 percent, and exports to Europe slipped 11.7 percent.
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