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.
GET TO SAFETY: Authorities were scrambling to evacuate nearly 700 people in Hualien County to prepare for overflow from a natural dam formed by a previous typhoon Typhoon Podul yesterday intensified and accelerated as it neared Taiwan, with the impact expected to be felt overnight, the Central Weather Administration (CWA) said, while the Directorate-General of Personnel Administration announced that schools and government offices in most areas of southern and eastern Taiwan would be closed today. The affected regions are Tainan, Kaohsiung and Chiayi City, and Yunlin, Chiayi, Pingtung, Hualien and Taitung counties, as well as the outlying Penghu County. As of 10pm last night, the storm was about 370km east-southeast of Taitung County, moving west-northwest at 27kph, CWA data showed. With a radius of 120km, Podul is carrying maximum sustained
Tropical Storm Podul strengthened into a typhoon at 8pm yesterday, the Central Weather Administration (CWA) said, with a sea warning to be issued late last night or early this morning. As of 8pm, the typhoon was 1,020km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, moving west at 23kph. The storm carried maximum sustained winds of 119kph and gusts reaching 155kph, the CWA said. Based on the tropical storm’s trajectory, a land warning could be issued any time from midday today, it added. CWA forecaster Chang Chun-yao (張竣堯) said Podul is a fast-moving storm that is forecast to bring its heaviest rainfall and strongest
TRAJECTORY: The severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday, and would influence the nation to varying degrees, a forecaster said The Central Weather Administration (CWA) yesterday said it would likely issue a sea warning for Tropical Storm Podul tomorrow morning and a land warning that evening at the earliest. CWA forecaster Lin Ting-yi (林定宜) said the severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday. As of 2pm yesterday, the storm was moving west at 21kph and packing sustained winds of 108kph and gusts of up to 136.8kph, the CWA said. Lin said that the tropical storm was about 1,710km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, with two possible trajectories over the next one
President William Lai (賴清德) yesterday criticized the nuclear energy referendum scheduled for Saturday next week, saying that holding the plebiscite before the government can conduct safety evaluations is a denial of the public’s right to make informed decisions. Lai, who is also the chairman of the Democratic Progressive Party (DPP), made the comments at the party’s Central Standing Committee meeting at its headquarters in Taipei. ‘NO’ “I will go to the ballot box on Saturday next week to cast a ‘no’ vote, as we all should do,” he said as he called on the public to reject the proposition to reactivate the decommissioned
RSS