Exports last month soared 24.9 percent from a year earlier to US$25.38 billion as local manufacturers raised capacity to make up for production disruptions in China amid the COVID-19 outbreak, the Ministry of Finance said yesterday.
The increase could have exceeded 30 percent in the absence of the disease, which might push trade figures into contraction mode this month and beyond, if it evolves into a global threat and hurts the end market, the ministry said.
“The improvement in trade data had much to do with a low comparison base last year linked to the Lunar New Year,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a media briefing in Taipei.
Photo: EPA-EFE / DAVID CHANG
Local firms stepped up production at home to make up for capacity shortages in China, Tsai said, adding that capacity adjustments are not order transfers.
Capacity adjustments were particularly evident in printed circuit boards, whose output soared nearly 50 percent last month from a year earlier, she said.
The holiday effect allowed all product categories to register robust increases, the only exception being machinery shipments after Chinese clients delayed or canceled orders, Tsai said.
Machinery as well as plastic and chemical products were seriously affected by the outbreak in China due to their heavy dependence on that market, Tsai said.
Electronics fared better with a 46.2 percent increase from a year earlier to US$9.38 billion, thanks to robust demand for semiconductors, DRAM, servers, passive components and other devices used in 5G deployment and other burgeoning technologies, Tsai said, adding that base metals and mineral products also saw improvements in business.
However, she would not bet on a sustained recovery, saying that exports could contract 2 to 5 percent this month in light of poor visibility and weak sentiment among firms.
“Buyers have avoided placing orders on concern of uncertainty,” Tsai said, citing comments from local firms.
Imports grew faster last month, with a 44.7 percent increase from a year earlier to US$22.08 billion, leading to a trade surplus of US$3.3 billion, a 34.7 percent decline from a year earlier, the ministry said.
Local technology firms continued to lend support to imports by buying capital equipment at an aggressive pace, it said, adding that purchases by local semiconductor firms increased 45.5 percent year-on-year.
Cumulatively, exports picked up 6.4 percent to US$50.45 billion in the first two months, while imports advanced 5.3 percent to US$43.69 billion, Tsai said.
“The coronavirus appears yet to peak given escalating cases across Europe and elsewhere, and is bound to weigh on trade momentum in the first two quarters,” she said.
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