Taiwan’s exports falling-forecast disappointing
2023.02.20 10:13
Taiwan’s exports falling-forecast disappointing
By Ray Johnson
Budrigannews.com – For the fifth month in a row, Taiwan’s export orders decreased in January, albeit at a slower rate, as a result of a continuing decline in Chinese demand and lower global consumer spending as a result of inflation and interest rate increases.
The island’s commodity arranges, a bellwether for worldwide innovation interest, had been 19.3% lower than a year prior at $47.51 billion, the Service of Monetary Issues said on Monday. That was higher than the 25.0% decline that analysts anticipated.
The long Lunar New Year holiday, which fell in January in both Taiwan and China, also had an impact on last month’s orders. The decline in January followed the annual decline of 23.2 percent experienced in December.
However, the ministry stated that an improved supply chain situation in China contributed to an increase in orders for telecoms products of 9.8% from a year earlier, marking the strongest increase since June.
It added that demand for chips for high-performance computing and automobiles offset the decline in electronics orders, which fell 21.8%.
The ministry’s statistics director, Huang Yu-ling, told reporters that the end of China’s pandemic controls had had no effect on 70% of the more than 2,000 companies it had surveyed because demand in the general environment remained weak.
The ministry stated that “the downside risks of the global economy are still high, which may affect the performance of export orders” despite the fact that new technologies-driven demand for semiconductors would assist orders during the traditional low season in the first quarter.
In addition, the ministry anticipates a 6.9% to 10.8% decrease in export orders this month compared to February 2022.
Major suppliers to Apple Inc. (NASDAQ:), such as Taiwan Semiconductor Manufacturing Co Ltd, are Taiwanese companies. NASDAQ: Qualcomm Inc. and other global technology corporations
In comparison to the annual decline of 37.7% seen in December, Taiwan’s Chinese orders in January were 45.9% lower than the previous year.
China’s strict zero-COVID policy, which had caused widespread public outrage with lockdowns and damage to the world’s second-largest economy, was largely abandoned late last year.
The same rate as in December, Taiwan’s orders from the United States decreased by 14.7% in January compared to the previous year.
Compared to December’s annual decline of 23.9%, export orders from Europe increased by 18.3%. Six percent of Japan’s orders fell.
