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Exports regain momentum, grow 18.4% last month

Exports, which slowed considerably in July, regained robust momentum to post double-digit growth of 18.4 percent year-on-year last month on a sharp increase in mineral product shipments, the Ministry of Finance said in a report yesterday.

Meanwhile, imports grew by nearly 40 percent, leaving a trade deficit of US$30 million, the report said.

“Export volume rose 18.4 percent to US$25.25 billion in August from last year,” statistics department director Lin Lee-jen (林麗貞) said. “Imports picked up 39.9 percent to US$25.28 billion, leaving a trade deficit of US$30 million.”

Lin said the figures showed that the nation had regained export dynamism fueled by significant boosts in the sale of mineral and electronic products.

Exports showed an 8 percent increase year-on-year in July, prompting many to worry about a slowdown as exports are the mainstay of the nation’s growth.

Exports to Hong Kong and China advanced 13.9 percent to US$10.04 billion last month, compared with 4 percent in July, the report said, while exports to the US grew 11.6 percent, from a decline of 6.1 percent a month earlier.

On the import side, Lin said falling crude oil prices should ease import growth and reverse the trade imbalance next month.

“Crude oil hit US$147 a barrel in July but averaged US$129.2 a barrel in August,” Lin said. “Imported oil and other mineral products reached US$9.06 billion, up 139.3 percent last month.”

Kevin Hsiao (蕭正義), director of UBS Wealth Management Research in Taiwan, said he was surprised at the pace of acceleration as most market analysts had expected a rate of 6.5 percent.

“The [export] performance is much better than expected,” Hsiao said by telephone.

“But it remains to be seen if the momentum can hold out.”

Liang Kuo-yuan (梁國源), president of Polaris Research Institute (寶華綜合經濟研究院), echoed the cautious sentiment.

“The recovery of two-digit growth in exports is definitely a positive sign,” Liang said by telephone. “But it is too early to say if the impact of imported inflation is over and things will turn for better.”

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