The nation’s exports contracted 2.8 percent last month from a year earlier, as demand for electronic devices peaked in October and slumping crude oil prices sidelined buyers, the Ministry of Finance said yesterday.
The decline surprised the market, as economists from different institutes had projected a modest increase for the Christmas season.
Outbound shipments totaled US$25.65 billion last month, shrinking 2.8 percent from the level a year prior, dragged by sluggish demand for mineral, chemical and plastic products, Department of Statistics Director Yeh Maan-tzwu (葉滿足) said.
International crude oil prices dropped below US$60 per barrel last month, driving buyers to delay purchasing oil-related products on expectations of further price corrections, Yeh said.
As a result, mineral exports tumbled 39.7 percent last month from a year earlier, while plastics and chemical exports declined 12.3 percent and 5.1 percent respectively, the ministry said. The three sectors accounted for 21.1 percent of total exports last month.
Electronics shipments grew 9.7 percent to US$8.43 billion last month, chiefly on sustained demand for semiconductors that helped buffer the impact of tumbling oil prices, although the growth momentum in electronics has slowed since October last year, Yeh said.
Shipments to the US rose 14.6 percent to US$3.08 billion last month, but decelerated by single-digit percentages elsewhere across the world, in line with uncertainty in Europe, Japan, China and other emerging markets, the report said.
Imports declined by a faster pace of 12.3 percent to US$21.1 billion last month, widening the trade surplus to US$4.45 billion, from US$4.22 billion in November last year, the report said.
For the whole of last year, exports gained 2.7 percent to a record high of US$313.84 billion, thanks to a double-digit increase in electronics shipments. However, last year’s growth still lagged behind the 5.77 percent increase forecast by the government in November.
The ministry expects export figures to improve this month because of a low base last year caused by holiday disruptions.
The strong US economy will lend further support to local technology firms, Taipei-based Standard Chartered economist Tony Phoo (符明財) said.
“The electronics, information and telecommunications sectors posted an 8.5 gain last month, suggesting a positive tech trend this year,” Phoo said in a client note.
The trend is favorable for the related sectors that weigh more than 30 percent of the export makeup, he said.
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