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.
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