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Exports fall for first time since 2002

Trade statistics * Exports last month fell by 10.8 percent from last year to US$11.77 billion, the first drop since March 2002 * Imports for last month declined 17.3 percent year-on-year to US$10.87 billion, marking the first fall in nearly two years * Exports for the first two months of this year grew 8.3 percent from the previous year to US$27.08 billion * Imports for the first two months of this year rose by 11.2 percent to total US$26.38 billion

The nation's export sector recorded negative growth for the first time in three years last month, due to shrinking global demand for electronics and communication products, and fewer working days because of the Lunar New Year, the Ministry of Finance said yesterday.

Exports last month fell by 10.8 percent from last year to US$11.77 billion, the first drop since March 2002, when exports fell 2.32 percent.

Imports slid 17.3 percent year-on-year to US$10.87 billion, the first fall in nearly two years, resulting in a trade surplus of US$900 million last month, compared with a trade deficit of US$200 million in January.

The ministry's director of statistics Hsu Kuo-chung (許國忠) said the decrease in both exports and imports last month was mainly from the seasonal fall in demand for electronics products and components from major trading partners, including China, the US, Japan and Europe.

January and February

Exports for the first two months of this year grew 8.3 percent from the previous year to US$27.08 billion, while imports jumped by 11.2 percent to US$26.38 billion, causing the trade surplus to fall by 45.1 percent year-on-year to US$700.6 million, according to the ministry's figures.

China and Hong Kong remained the biggest recipients of Taiwan's exports, accounting for 36.2 percent of the US$27.08 billion worth of goods sent overseas in the first two months of the year, followed by the US at 15.3 percent and Japan at 8.3 percent.

For the current quarter, Hsu predicted that exports will grow 7.44 percent from US$39.78 billion last year, while imports will increase 11.02 percent from US$37.8 billion.

Both exports and imports in the first quarter of last year, however, saw double-digit growth from 2003.

"The slim growth is because of the higher base last year and sluggish global demand," Hsu said.

Currency appreciation

The strengthening local currency is another variable for the export sector, Hsu said, adding that the fast appreciation of the NT dollar has impacted the profits of the export-oriented electronics industry which is characterized by slim margins.

Looking ahead, the nation's external trade is expected to slow down this year, dragged down by the decelerating global economy, Hsu said.

The global economy is expected to experience 3.3 percent growth this year, down from 4.1 percent last year and, accordingly, global trade growth should shrink to 4.2 percent from 8.9 percent last year, according to Global Insight Inc's latest forecast released last month.
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