Exports last month contracted 13.3 percent from a year earlier to US$35.96 billion, shrinking for the eighth consecutive month, as demand for technology and non-tech products remained weak amid a global economic slowdown, the Ministry of Finance said yesterday.
“Shipments of personal computers bucked the downtrend with an impressive increase, but it is too early to speculate on a recovery in light of unfavorable macro-environment,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told an online news conference.
Major tech firms gave conservative guidance for this quarter and visibility beyond that remains poor, Tsai said, adding that inventory adjustments would persist next quarter as indicated by Taiwan Semiconductor Manufacturing Co (台積電), the sole supplier of chips used in Apple Inc’s iPhones.
Photo: I-Hwa Cheng, REUTERS
Tsai said she expects a decline of 12.5 to 15.5 percent in exports for this month, as global inflation and monetary tightening would continue to curb demand for tech products.
Shipments of electronics fell 8.6 percent from a year earlier to US$15.74 billion, with chip exports falling 7.1 percent to US$14.75 billion, she said, adding that the pace eased to single-digit percentages for the first time this year, a positive development.
By contrast, exports of information and communications devices grew 5.4 percent to US$5.47 billion, as suppliers reported a rebound, but it is unclear if the pickup would continue, she said.
Declines in shipments of optical devices, noticeably flat panels, narrowed to 17.8 percent, from more than 30 percent in previous months, suggesting that the worst is over for the industry, she said, citing flat-panel maker AUO Corp’s (友達) guidance.
Non-tech products were hit harder with double-digit percentage declines, and mineral products were no exception this time, in line with sapping international oil prices, Tsai said.
Shipments of textiles and chemical products plunged more than 30 percent, while exports of base metals and plastic products as well as transportation tools fell more than 20 percent, she said.
Trading with major partners registered negative growth — falling 3.6 percent in Europe and 22 percent in China — indicating that business improvement linked to China’s opening has been anemic, she said.
Japan was the only exception — with exports soaring 19.8 percent to US$3.2 billion on the back of strong demand for electronics, Tsai said.
Imports decreased at a faster pace of 20.2 percent to US$29.5 billion, giving Taiwan a trade surplus of US$6.71 billion, the ministry’s data showed.
In particular, imports of semiconductor equipment shrank 32 percent, while agricultural and industrial raw materials fell 23 percent, indicating that local firms practiced frugality and avoided expansions to save costs.
In the first four months of the year, exports reduced 17.7 percent to US$133.7 billion, while imports dropped 16.9 percent to US$118.07 billion, the ministry said.
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