Exports could post a year-on-year decline for the first half of the year because of the higher comparison basis recorded last year and lower demand from major export markets in the wake of a fragile global economy, the Ministry of Finance said yesterday.
Outbound shipments totaled US$25.54 billion last month, down 6.4 percent year-on-year and 3 percent from last month, the ministry said in a report.
Exports to China and Hong Kong contracted 11.6 percent year-on-year to US$9.86 billion following slower economic activity, with exports of machines, metals, plastics and chemicals declining for a second consecutive month, the report said.
Meanwhile, exports to the US fell 16.3 percent from the previous year to US$27.06 billion as a result of lower exports of information and communication technology, products, while outbound shipments to Japan were down 10.6 percent at US$1.46 billion, ministry data showed.
However, exports to Europe and the six main ASEAN members both rebounded last month, with annual growth standing at 3.5 percent and 4.4 percent respectively.
Nine of the nation’s 10 major export sectors posted year-on-year declines last month, while exports of transportation equipment rose 17.9 percent to US$1.01 billion from a year ago, its highest ever level, data showed.
Donna Kwok (郭浩庄), an economist for Greater China at HSBC Asia, said in a note yesterday that she expected demand from the West, especially Europe, to constrain export growth for a while longer.
Meanwhile, the steady economic slowdown from the gradual impact of global energy price increases in the first quarter of this year could encourage the central bank to keep interest rates unchanged at least until the fourth quarter, Kwok said.
For the first four months of this year exports totaled US$96.37 billion, down 4.7 percent from a year earlier, the worst performance among the four Asian Tigers, ministry statistics showed.
“Although the global economy has shown signs of improvement, the competition between countries has also been tougher, making it harder for some exports from Taiwan,” Lin said.
Exports to South Korea inched up 0.9 percent year-on-year in the first four months, with growth in exports to Singapore and Hong Kong standing at 6.2 percent and minus 0.3 percent respectively in the first three months, according to ministry statistics.
The nation’s imports, or inbound shipments, totaled US$24.86 billion last month, up 3 percent year-on-year and 3.6 percent from last month, spearheaded by higher prices for imported crude petroleum, the ministry said.
As a result of falling exports and rising imports, the trade surplus fell to US$690 million, down 76.6 percent year-on-year and 70.8 percent from the previous month, the data showed.
However, imports of capital equipment fell 1.4 percent from a year ago to US$3.1 billion last month, with machine imports posting its 10th consecutive monthly fall, indicating continued weakness in private investment.
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,”
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
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