Exports rebounded last month to their highest level in a year, as a recovery in the world’s economy boosted demand for Taiwanese-made electronics, the Ministry of Finance said yesterday.
Exports expanded 7.5 percent to US$19.8 billion last month from US$19 billion in September, ministry statistics showed. On an annual basis, however, that still represented a decline of 4.7 percent.
“Keeping pace with the pickup in the global economy, the nation’s exports may start growing again this month,” said Lin Lee-jen (林麗貞), head of the ministry’s statistics department, adding that demand for the Christmas shopping season would also help.
There was a good possibility that exports this month would grow by a double-digit percentage from a year ago to exceed US$20 billion, which has not been seen since September last year, Lin said, addin growth would be significant next month.
Exports to the nation’s largest export destination, China, including Hong Kong, last month grew for the second straight month on an annual basis to US$8.26 billion.
The US and Europe were likely to join the ranks of steady economic revival, leading to increasing demand for electronics made by local firms, Lin said.
Exports to the “US and Europe may return to positive [territory] this month,” Lin said.
The US and Europe, which accounted for a combined 22.3 percent of total exports last month, have shown a strong rebound by marking their best exports in 10 months and 12 months, to US$2.15 billion and US$2.28 billion respectively, the ministry’s statistics showed.
“We did see a gradual pickup in the nation’s exports in October, but we do not expect [exports] to recover to pre-economic recession levels until mid-2011,” said Cheng Cheng-mount (鄭貞茂), an economist with Citi Taiwan. “The [month-on-month] pace of growth will become steady in November and December.”
Exports last month fell slightly short of Cheng’s estimate of US$20 billion.
The finance ministry said imports hit their second-highest level in the past 12 months at US$16.58 billion last month, with the strongest growth in equipment purchases.
After 17 straight months of decline, imports of capital equipment started to grow again to US$2.63 billion, up 12.3 percent from a year ago, statistics show. That also set a 13-month high.
Imports of semiconductor equipment grew the fastest, more than doubling from last year, the ministry said, without providing figures.
The nation’s biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co, has raised capital spending twice this year to US$2.7 billion and plans to spend more next year.
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