Jan 20, 2017 Market Comments Off on Taiwan’s export orders down 1.6% in 2016
Taipei-- Taiwan's export orders for 2016 fell 1.6 percent from a year earlier as a rebound in global demand in the second half of the year failed to reverse the downturn seen in the first half, according to the Ministry of Economic Affairs (MOEA).
Citing data, the MOEA said that export orders for the entire 2016 stood at US$444.54 billion, down 1.6 percent from a year earlier, while December was the fifth consecutive month that the country's export orders posted a year-on-year increase as the global economy bounced back to boost consumption, in particular in high-tech gadgets.
It was the second consecutive year for Taiwan to post a year-on-year decline in export orders, the MOEA said. In 2015, Taiwan's export orders fell 4.4 percent from 2014 due to an economic slowdown.
Last year, export orders placed for information/communications device exporters rose 0.2 percent from a year earlier to US$133.50 billion, while export orders placed for other electronics devices grew 2.6 percent year-on-year to US$118.65 billion.
The two segments accounted for more than 56 percent of Taiwan's export orders in 2016, the MOEA said.
Export orders placed to Taiwanese base metal exporters for 2016 fell 2.3 percent from a year earlier to US$23.59 billion, and export orders taken for local precision equipment shed 15.9 percent year-on-year to US$22.72 billion, the data showed.
In 2016, export orders placed to local plastics/rubber firms also fell 4.1 percent from a year earlier to US$19.74 billion, while orders received by machinery makers dropped 1.5 percent to US$20.33 billion, and orders taken by chemical firms decreased 4.9 percent to US$19.06 billion, the data indicated.
In December alone, Taiwanese firms received US$41.24 billion in export orders, up 6.3 percent year-on-year as almost every major segment in the country witnessed its orders growing from a year earlier, the MOEA said.
Last month, export orders received by information/communications device makers and other electronics manufacturers, the two largest segments in Taiwan's exports, rose 7.2 percent and 8.1 percent, respectively, from a year earlier on the back of a buying spree in the global market during the Christmas season, the ministry said.
Export orders taken by base metal firms also gained 13.4 percent in December, while orders received by precision equipment rose 8.8 percent from a year earlier, the ministry added.
Looking ahead, Lin Li-chen (???), director of the MOEA's Department of Statistics, said that she remained upbeat about the first half of this year amid the global rebound and due to a relatively low comparison base in the same period of last year.
She added that Taiwan's export orders could continue to grow in the first half.
As for the second half of this year, Lin said that it remained to be seen whether international brands' efforts to launch new smartphones will continue to boost global demand. But she added she remained cautiously optimistic about the second half.
Lin urged local exporters to watch closely what economic policies U.S. President-elect Donald Trump will lay out since they could have an impact on global trade. Trump is scheduled to be sworn in later in the day.
Source: Focus Taiwan News Channel