Taiwan’s exports set records last year, rising more than 7 percent from a year earlier, although many exporters fell victim to weakening global demand in the second half of the year, the Ministry of Finance announced.
Exports totaled US$479.52 billion, up 7.4 percent from a year earlier, beating the previous record of US$446.37 billion recorded in 2021, data compiled by the ministry showed.
The electronic components industry served as the main driver for last year’s export growth, posting US$200.14 billion in outbound sales, up 16.4 percent from a year earlier and accounting for almost 42 percent of the total, with sales from semiconductor suppliers rising 18.4 percent to US$184.14 billion, the data showed.
Photo: CNA
However, outbound sales in the fourth quarter fell 8.6 percent from a year earlier to US$111.81 billion, with exports last month dropping 12.1 percent year-on-year to US$35.75 billion — the fourth consecutive annual monthly decline — although last month’s fall moderated from a 13.1 percent drop in November, the ministry said on Saturday.
Last month’s exports were slightly lower than an earlier estimate by the ministry, which forecast they would fall between US$35.8 billion and US$37.4 billion, down 8 to 12 percent from a year earlier.
Meanwhile, imports last year totaled US$427.6 billion, up 11.9 percent from a year earlier, with a trade surplus of US$51.92 billion.
The robust showing came even though imports last month fell 11.4 percent from a year earlier to US$30.96 billion, while the trade surplus dropped 16.7 percent year-on-year to US$4.79 billion, the ministry said.
Exporters faced headwinds in the second half of last year, caused by a decline in global demand, which paved the way for inventory adjustments in many industries, but the stronger first half helped Taiwan maintain its uptrend in exports for the full year, the ministry said.
Fast-growing inflation, which prompted aggressive rate hike cycles by major central banks around the world, discouraged consumers from spending, Department of Statistics Director-General Beatrice Tsai (蔡美娜) said.
Russia’s invasion of Ukraine continued to hurt the global economy, while a wave of COVID-19 infections in China also sent global demand into a tailspin, Tsai said.
A relatively high comparison base in December 2021 also affected last month’s exports data, she added.
All major industries last month reported a decline in outbound sales, except the semiconductor sector, which posted US$14.91 billion in exports, up 0.8 percent from a year earlier.
The broader electronic components industry, which includes semiconductor suppliers, saw exports fall 1.4 percent from a year earlier to US$16.04 billion — the second consecutive annual monthly decline, Tsai said.
The electronics industry accounted for 44.87 percent of Taiwan’s total exports last month.
Exports posted by the information and communications industry, and the video and audio industry together fell 10.7 percent year-on-year to US$5.19 billion, while exports reported by the optoelectronics sector fell 30.3 percent to US$732 million, the ministry said.
Old economy industries, in particular, felt the pinch from the global slowdown, with exports posted by the base metal, machinery, and plastics and rubber industries falling 22 percent, 9.4 percent and 33.8 percent respectively, to US$2.43 billion, US$2.24 billion and US$1.68 billion last month, the ministry said.
Exports posted by the chemical, transportation and mineral industries fell 28.4 percent, 11.6 percent and 25.4 percent respectively, to US$1.49 billion, US$1.17 billion and US$893 million, the ministry said.
While China, including Hong Kong, last month remained the largest buyer of Taiwan-made goods, exports to the country fell 16.4 percent from a year earlier to US$14.28 billion due to interruptions caused by the COVID-19 pandemic, the ministry said.
ASEAN countries were second, purchasing US$5.73 billion of Taiwanese goods, down 10.8 percent from a year earlier, while exports to the US, Europe and Japan fell 2.6 percent, 10.5 percent and 6.1 percent respectively, to US$5.67 billion, US$3.16 billion and US$2.59 billion, the ministry added.
For last year as a whole, China was the largest buyer of Taiwanese goods, with purchases totaling US$185.92 billion, down 1.6 percent from a year earlier, the ministry said.
Looking ahead, Tsai said that weakening global demand and fewer working days this month due to the 10-day Lunar New Year holiday mean Taiwan’s exports are expected to post a year-on-year decline of 20 to 24 percent to between US$30.4 billion and US$32 billion.
While many major industries are expected to continue to experience a slowdown, Tsai said that the steel industry could see a revival, as some steelmakers in the region have raised wholesale prices, expecting robust demand.
GEARING UP: An invasion would be difficult and would strain China’s forces, but it has conducted large-scale training supporting an invasion scenario, the report said China increased its military pressure on Taiwan last year and took other steps in preparation for a potential invasion, an annual report published by the US Department of Defense on Wednesday showed. “Throughout 2023, Beijing continued to erode longstanding norms in and around Taiwan by employing a range of pressure tactics against Taiwan,” the report said, which is titled “Military and Security Developments Involving the People’s Republic of China (PRC) 2024.” The Chinese People’s Liberation Army (PLA) “is preparing for a contingency to unify Taiwan with the PRC by force, if perceived as necessary by Beijing, while simultaneously deterring, delaying or denying
PEACEFUL RESOLUTION: A statement issued following a meeting between Australia and Britain reiterated support for Taiwan and opposition to change in the Taiwan Strait Canada should support the peaceful resolution of Taiwan’s destiny according to the will of Taiwanese, Canadian lawmakers said in a resolution marking the second anniversary of that nation’s Indo-Pacific strategy on Monday. The Canadian House of Commons committee on Canada-Chinese relations made the comment as part of 34 recommendations for the new edition of the strategy, adding that Ottawa should back Taiwan’s meaningful participation in international organizations. Canada’s Indo-Pacific Strategy, first published in October 2022, emphasized that the region’s security, trade, human rights, democracy and environmental protection would play a crucial role in shaping Canada’s future. The strategy called for Canada to deepen
QUICK LOOK: The amendments include stricter recall requirements and Constitutional Court procedures, as well as a big increase in local governments’ budgets Portions of controversial amendments to tighten requirements for recalling officials and Constitutional Court procedures were passed by opposition lawmakers yesterday following clashes between lawmakers in the morning, as Democratic Progressive Party (DPP) members tried to block Chinese Nationalist Party (KMT) legislators from entering the chamber. Parts of the Public Officials Election and Recall Act (公職人員選舉罷免法) and Constitutional Court Procedure Act (憲法訴訟法) passed the third reading yesterday. The legislature was still voting on various amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) as of press time last night, after the session was extended to midnight. Amendments to Article 4
‘ONE BRIDGE’: The US president-elect met with Akie Abe on Dec. 15 in Florida and the two discussed a potential Taiwan-China conflict’s implications for world peace US president-elect Donald Trump has described Taiwan as “a major issue for world peace” during a meeting with Akie Abe, the widow of late Japanese prime minister Shinzo Abe, Japanese newspaper the Yomiuri Shimbun quoted sources as saying in a report yesterday. Trump met with Akie Abe on Dec. 15 at the Mar-a-Lago estate in Florida, where the two discussed the Russo-Ukrainian war and the situation in the Taiwan Strait. During the meeting, Trump spoke on the implications for world peace of a potential Taiwan-China conflict, which “indicated his administration’s stance of placing importance on dealing with the situation in
RSS