Taiwan’s exports rose 21.8 percent from a year earlier to US$24.37 billion last month on demand from China, the US and Europe ahead of Christmas and the Lunar New Year, the Ministry of Finance said yesterday.
It was the third-highest value ever, with exports to Europe increasing 27.8 percent on a yearly basis to a new record of US$2.95 billion despite lingering debt problems there, the report said.
For the first 11 months, exports increased 36.6 percent to US$250.81 billion and are set to exceed the US$272.7 billion level for the whole of this year that the Directorate-General of Budget, Accounting and Statistics (DGBAS) forecast last month, Lin Lee-jen (林麗貞), head of the ministry’s statistics department, said at a news conference.
PHOTO: AFP
“Exports this quarter will outperform the third quarter as demand for consumer electronics remains strong amid the region’s fast-growing economies,” Lin said.
Shipments of electronics gained 16.4 percent yearly to US$6.75 billion last month, while those of base metals and related products increased 25.9 percent to NT$2.27 billion, the report showed.
Imports jumped 33.8 percent year-on-year to US$23.96 billion last month with capital goods contributing US$4.4 billion, suggesting active expansions on the part of the private sector, Lin said.
The latest trade figures translated into a trade surplus of US$410 million, the lowest since the global financial crisis in 2008, due to the import of three aircraft, Lin said, dismissing links with foreign exchange rates.
The New Taiwan dollar weakened NT$0.22 against the US currency last month from October, she said.
Shipments to China including Hong Kong picked up 18.2 percent yearly to US$9.83 billion last month, while exports to the US increased 32.1 percent to US$2.96 billion, the report said.
Exports to Southeast Asian countries gained 15.8 percent to US$3.53 billion last month, while those to Japan grew 12.3 percent to US$1.57 billion, the report said.
The rosy trade data is likely to encourage the central bank to hike interest rates in its quarterly board meeting later this month to cushion inflationary pressure, said Tony Phoo (符銘財), an economist at Standard Chartered Bank Taiwan Ltd (渣打銀行).
“The central bank will likely raise the interest rate by another 12.5 basis points as Taiwan’s real interest rate was in negative territory last month,” Phoo said.
The nation’s consumer price index rose 1.53 percent last month from a year earlier, DGBAS reported on Monday, while the one-year time deposit rate is currently 1.13 percent at Bank of Taiwan (臺灣銀行).
Donna Kwok (郭浩莊), an economist on Greater China at HSBC, however, said the central bank is likely to halt the interest normalization cycle this month with the NT dollar still under appreciation pressure.
“We expect the central bank to keep its policy rate frozen,” Kwok said in a note. “With the formation of new headwinds in Europe and the negative turn in the US labor market, the outlook for Taiwanese exports is gloomier than in September.”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS