The decline in exports deepened to 14.8 percent year-on-year to US$23.93 billion last month, falling by the fastest pace in six years, as demand in all trade partners fell for almost all product categories amid a global slowdown, the Ministry of Finance said yesterday.
It is the third consecutive month of double-digit decline this year, a worrying sign last seen during the global financial crisis of 2008-2009 that drove the nation’s export-reliant economy into a recession.
“Lower crude oil prices can no longer be blamed for the contraction in both volume and prices,” Department of Statistics Director-General Yeh Maan-tzwu (葉滿足) said.
Rather, the soft global economy has sapped exports worldwide without any sign of stabilization in sight, she said.
Imports also fell,with a 16.7 percent slump to US$19.97 billion last month, from a year earlier, creating a trade surplus of US$3.96 billion, the ministry’s monthly report showed.
The double-digit percentage decline in outbound shipments cut across all trade partners except the US — to which exports dropped 6 percent, the report said.
iPHONE BOUNCE delayed
That means that the much-expected inventory building prior to tomorrow’s expected launch of the new iPhone model has yet to materialize, if it does at all, Yeh said.
Electronics shipments, which accounted for 34.2 percent of all exports, declined 11.4 percent to US$8.18 billion last month, the report said, as inventory adjustments lingered.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, recently said the adjustment is about to end, but chip packagers Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) and Siliconware Precision Industries Co (SPIL, 矽品精密) said the process might take longer.
CHINA EXPORTS
Exports to China, Taiwan’s largest export market, tumbled 16.6 percent to US$9.32 billion last month, the report said, as the market struggles to curb a slowdown and reduce its dependence on foreign exporters.
Shipments to ASEAN shrank 18.9 percent last month and the ministry cited oil-price declines as the main reason.
Exports of oil-related products dropped 5.6 percentage points from total shipments with mineral and chemical exports retreating 45.8 percent and 21.2 percent respectively from levels seen during the same period last year, the report said.
modest base
Yeh said that a 15.5 percent downturn for basic metal and related products are further signs of weakening of global demand.
The ministry expects the contraction in year-on-year export data to narrow this month, given the modest comparison base from last year.
Poor exports should not hurt GDP growth further this quarter, because of a decline in the New Taiwan dollar against the greenback that is set to allow exporters to book noticeable foreign exchange gains, KGI Securities said.
‘ABUSE OF POWER’: Lee Chun-yi allegedly used a Control Yuan vehicle to transport his dog to a pet grooming salon and take his wife to restaurants, media reports said Control Yuan Secretary-General Lee Chun-yi (李俊俋) resigned on Sunday night, admitting that he had misused a government vehicle, as reported by the media. Control Yuan Vice President Lee Hung-chun (李鴻鈞) yesterday apologized to the public over the issue. The watchdog body would follow up on similar accusations made by the Chinese Nationalist Party (KMT) and would investigate the alleged misuse of government vehicles by three other Control Yuan members: Su Li-chiung (蘇麗瓊), Lin Yu-jung (林郁容) and Wang Jung-chang (王榮璋), Lee Hung-chun said. Lee Chun-yi in a statement apologized for using a Control Yuan vehicle to transport his dog to a
EUROPEAN TARGETS: The planned Munich center would support TSMC’s European customers to design high-performance, energy-efficient chips, an executive said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said that it plans to launch a new research-and-development (R&D) center in Munich, Germany, next quarter to assist customers with chip design. TSMC Europe president Paul de Bot made the announcement during a technology symposium in Amsterdam on Tuesday, the chipmaker said. The new Munich center would be the firm’s first chip designing center in Europe, it said. The chipmaker has set up a major R&D center at its base of operations in Hsinchu and plans to create a new one in the US to provide services for major US customers,
BEIJING’S ‘PAWN’: ‘We, as Chinese, should never forget our roots, history, culture,’ Want Want Holdings general manager Tsai Wang-ting said at a summit in China The Mainland Affairs Council (MAC) yesterday condemned Want Want China Times Media Group (旺旺中時媒體集團) for making comments at the Cross-Strait Chinese Culture Summit that it said have damaged Taiwan’s sovereignty, adding that it would investigate if the group had colluded with China in the matter and contravened cross-strait regulations. The council issued a statement after Want Want Holdings (旺旺集團有限公司) general manager Tsai Wang-ting (蔡旺庭), the third son of the group’s founder, Tsai Eng-meng (蔡衍明), said at the summit last week that the group originated in “Chinese Taiwan,” and has developed and prospered in “the motherland.” “We, as Chinese, should never
‘A SURVIVAL QUESTION’: US officials have been urging the opposition KMT and TPP not to block defense spending, especially the special defense budget, an official said The US plans to ramp up weapons sales to Taiwan to a level exceeding US President Donald Trump’s first term as part of an effort to deter China as it intensifies military pressure on the nation, two US officials said on condition of anonymity. If US arms sales do accelerate, it could ease worries about the extent of Trump’s commitment to Taiwan. It would also add new friction to the tense US-China relationship. The officials said they expect US approvals for weapons sales to Taiwan over the next four years to surpass those in Trump’s first term, with one of them saying
RSS