Taiwan’s exports will fall as in other countries
2022.12.07 04:25
Taiwan’s exports will fall as in other countries
Budrigannews.com – Due to the worsening state of the global economy and the outlook being once more clouded by inflation and interest rate increases around the world, Taiwan’s exports fell in November for the third consecutive month and more rapidly than anticipated.
The Ministry of Finance reported on Wednesday that exports fell 13.1% from a year earlier to $36.13 billion, the largest decline in almost seven years and the lowest level in 19 months.
That was significantly worse than a Reuters poll’s prediction of a 6.7% decline and came after a 0.5% decline in October.
The ministry stated that the war in Ukraine, unabated global inflation pressures, and interest rate increase cycles in major economies were causing global demand to slow “more and more obviously.”
Tony Phoo, senior market analyst for upper east Asia at Standard Contracted (OTC:) According to the bank, weakening demand may persist through the first and second quarters of next year.
He stated, “Taiwan’s officially estimated economic growth rate of more than 2% next year will be under pressure if it continues into the second half of next year.”
In November, Taiwan’s total exports of electronic components decreased by 4.9 percent to $15.15 billion, with semiconductor exports decreasing by 3.4 percent from the previous year.
Apple Inc. (NASDAQ:) relies heavily on major suppliers like TSMC, the largest contract chipmaker in the world. as well as suppliers of chips for automobile manufacturers and low-end consumer goods, as well as other global tech giants.
After falling by 9.2% in October, Taiwan’s exports to China, the island’s largest trading partner, fell by 20.9% annually in November to $13.56 billion.
In November, China’s exports and imports contracted at their steepest rate in at least two and a half years due to weak global and domestic demand, COVID-driven production disruptions, and a property slump in the country.
The U.S.-China technology war and uncertainty regarding China’s coronavirus policy are among the upcoming risks, according to the finance ministry of Taiwan. Additionally, December exports could shrink by 8 to 12 percent from a year earlier.
Taiwan’s exports typically peak in the fourth quarter as technology firms compete to supply Western markets with smartphones, tablets, and other electronic devices in time for the holiday season’s end.
According to ministry official Beatrice Tsai, exports in the fourth quarter may decrease by more than 7% year-over-year.
Exports to the United States fell 11.3% in November, compared to an increase of 3.1% in October.
After increasing by 8.2% in October, Taiwan’s imports in November decreased by 8.6% to $32.7 billion, in contrast to economists’ expectations of a rise of 0.6 percent.
