Taiwan's exports fell in June for a fourth month as orders for computers, mobile phones and semiconductors dropped, dragging down the nation's economic growth.
Shipments fell 16.6 percent from a year earlier to US$10.3 billion, the Ministry of Finance said. Imports dropped 25.2 percent to US$8.6 billion. The trade surplus widened to US$1.7 billion from a US$1.2 billion surplus in May.
Falling demand for exports threatens to cut economic growth further as record unemployment and rising bad debt dampen domestic demand. Taiwan's economy grew 1.1 percent in the first quarter, its slowest pace in 26 years.
June exports were "slightly better than expected, but I don't see this as a sign of a turnaround,'' said Irmak Surenkok, an economist at Primasia Securities Co. "There aren't many policies left the government can implement to boost growth in 2001.'' The government predicted in May export growth would fall 5 percent this year, after 22 percent growth in 2000.
While the fall in Taiwan's exports and imports have become milder in June, indications of recovery in trade performance remains unclear, Hsu Kuo-chung (
He said another two to three months' observation is needed before any conclusion can be drawn. However, Hsu shared a few predictions on the overall imports and exports performance for this year.
He expects exports to resume growth around the end of this year or early next year and no earlier than December.
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