The nation’s exports last month declined 2 percent year-on-year to US$27 billion, as cheaper crude oil prices dampened sales of products heavily reliant on raw materials, overshadowing shipments of electronic components, the Ministry of Finance said yesterday.
It was the third straight month the critical economic gauge remained negative and exports might not improve this month or even for the rest of this year, Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a news conference in Taipei.
“The COVID-19 pandemic continued to weigh on sales of products using raw materials, as seen in a 57.3 percent plunge in exports of mineral products,” Tsai said.
Photo: David Chang, EPA-EFE
Likewise, shipments of base metals, plastic and chemical products dropped 15.2 percent, 19.9 percent and 15.6 percent year-on-year respectively, the ministry said in a report.
Exports of textile products slumped 35.1 percent, the second-worst fall since records began, as inventory remained high amid lockdowns in ASEAN and other markets, Tsai said.
However, shipments of electronic components continued to gain traction, logging a 13.2 percent increase to a record high of US$10.24 billion on fast-growing 5G deployment, as well as remote working and learning, she said.
Exports of semiconductors increased 14.2 percent to US$9.2 billion, while those of information and communications products rose 10.9 percent to US$3.95 billion, she said.
Remote learning and working from home might continue at many organizations and companies, boosting demand for data centers, servers and laptops, Tsai said.
Meanwhile, international technology giants pressed ahead with the launch of 5G wireless gadgets, despite the COVID-19 pandemic, providing business opportunities for local companies in their supply chains, she said.
“If the reopening of the economies in Europe and the US goes well, the electronics industry could perform better than expected in the second half of the year,” Singapore-based Barclays Bank PLC economist Angela Hsieh (謝涵涵) said.
“The biggest uncertainty comes from US-China relations, but the impact of that seems limited so far,” Hsieh added.
Exports to China and the US rose the most, gaining 10.6 percent and 9.3 percent respectively, while China accounted for 44.9 percent of overall exports, the ministry said.
Imports fell 3.5 percent to US$22.28 billion, mainly dragged down by cheaper crude oil prices that plummeted 63 percent year-on-year, Tsai said.
However, imports of capital equipment rose 14.2 percent to US$3.7 billion, as local firms, especially semiconductor makers, stood by their plans to upgrade and expand, she said.
The nation posted a trade surplus of US$4.72 billion for last month, a 5.6 percent increase from a year earlier.
The outlook is unlikely to become clear until global economies emerge from the pandemic, Tsai said, adding that exports would decline 2 to 5 percent this month.
That would suggest a decline in second-quarter exports from a year earlier.
In the first five months of this year, cumulative exports rose 1.5 percent to US$130.91 billion, while cumulative imports increased 1.4 percent to US$114.4 billion, creating a trade surplus of US$16.51 billion, the report showed.
Additional reporting by Bloomberg
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