Taiwan's government said exports, which make up about half the economy, will fall this year after shipments of computers, phones and other goods slumped for a second straight month.
Exports will probably shrink 5 percent in 2001, after rising 22 percent last year, said Hsu Kuo-Chung (
The expected slide in shipments this year is the latest sign that Taiwan's economy is on the skids.
Falling orders from the US, Taiwan's biggest market, have prompted chipmakers such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to slash sales and profit forecasts and shed workers in recent months. Meanwhile, spending at home isn't picking up the slack.
"Taiwan is suffering from a double whammy of an external slowdown and weak domestic demand," said Damian Gilhawley, an economist at China Securities Co (中信證券).
Exports are set to slide further in coming months because the second quarter is the "slow season" for technology goods, he said.
Exports to the US fell 13.5 percent last month from a year earlier to US$2.38 billion, making up about 22 percent of the total.
The world's biggest economy will probably grow just 1.5 percent this year, down from 5 percent last year, according to the IMF.
Exports to Japan fell 12 percent to US$1.14 billion, and exports to Europe fell 16.4 percent to US$1.73 billion.
Shipments of electronics, the country's biggest export, fell 18 percent from a year earlier to US$1.98 billion after falling 3.8 percent in March.
Exports of mobile phones and other telecommunications products fell by 17.7 percent to US$1.35 billion, compared with a 0.9 percent drop in March.
In the first four months of 2001, exports fell 5.7 percent from the same period a year earlier.
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