Exports rose at their slowest rate in seven months as SARS cut demand in China, the nation's largest export market, and demand dropped off in the US and Japan, the government reported yesterday.
Exports rose 2.1 percent from a year earlier to US$11.3 billion after growing 5.6 percent in April, the Ministry of Finance said in a statement.
Direct shipments to China more than doubled to US$1.6 billion last month, but sales to Hong Kong fell 18 percent to US$2.2 billion.
Many goods headed for China go through Hong Kong because of restrictions on cross-strait trade.
But one analyst played down the effect of SARS on the China market.
"Given the fact that exports to China more than doubled despite the fact that this country is the worst affected by SARS, I think a rise of 2.1 percent is not so bad," Wu Chung-shu (
"SARS has had some effect on business activities across the Taiwan Strait, but its impact has been limited," he said.
The spread of SARS has kept consumers in cities such as Beijing, Hong Kong and Taipei away from stores and restaurants, and led to restrictions on travel to, from and within the region.
Sales to the US, the nation's second-biggest export market, fell 8.5 percent to US$2 billion. Shipments to Japan fell 9.6 percent to US$992 million. Sales to Europe rose 3.6 percent to US$1.5 billion.
This month's figures will be a critical indicator of Taiwan's economic strength.
"We have to see the June figures," said Cheng Cheng-mount (
"If there is a slowed export market in June, then there is cause to be less optimistic about the economy," Cheng said.
Exports of computer chips and other electronics items, which make up the biggest share of the total, rose 12 percent. Sales of mobile phones and other telecommunications goods fell 26 percent.
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