Aug 07, 2019 General Comments Off on Taiwan’s July exports down 0.5 percent yearonyear
Taipei, Taiwan's exports in July fell from June and were slightly down yearonyear due to the ongoing trade disputes between Washington and Beijing, the Ministry of Finance (MOF) reported Wednesday.
Taiwan's exports in July totaled US$28.2 billion, down 0.5 percent yearonyear, while imports hit US$24.64 billion, an annual fall of 5.4 percent, leaving the country with a trade surplus of US$3.56 billion, MOF statistics showed.
Speaking at a news conference, Department of Statistics DirectorGeneral Beatrice Tsai attributed July's drop in export growth to the ongoing trade war between the United States and China, which has slowed global economic expansion.
That has reduced the international prices of raw materials, impacting conventional businesses such as basic metals, rubber, plastic and chemical industries, whose exports all decreased by more than 10 percent last month, she said.
However, Tsai said Taiwan's export of information/audio visual products in July hit a singlemonth high of US$3.69 billion, a 25.7 percent increase from a year ago, thanks to Taiwanese companies in China investing more at home, orders shifting to Taiwan amid the U.SChina trade war and the start of the peak season for the hightech sector.
Last month, Taiwan's outbound shipments of electronic components also set a record monthly high of US$9.5 billion, up by 1.8 percent yearonyear and propping up the country's overall export performance, she said.
Compared with neighboring countries, Taiwan outperformed South Korea, whose July exports fell by 11 percent from a year ago, Tsai said. In June, the exports of Japan, Singapore and Hong Kong dropped by 5.9 percent, 10.3 percent and 8.8 percent, respectively, compared with a 0.5 percent increase posted by Taiwan, she noted.
On the other side, Taiwan's imports last month slid by 5.4 percent from a year earlier to US$24.64 billion, due mainly to weaker demand from local companies for raw materials and machinery equipment, she pointed out.
Bucking this trend, Taiwan's import of electronic components in July set a historical third singlemonth high of US$5.4 billion, a 4.6 percent yearonyear rise and an indication that Taiwanese companies are boosting inventories in preparation for the approaching hightech sector peak season, Tsai said.
The U.S. market absorbed Taiwanese exports worth US$4.07 billion in July an alltime high that represented annual growth of 21.7 percent and was the 34th consecutive month of growth, she said.
In the first seven months, Taiwan's exports to the U.S. also registered a historical high of US$26.12 billion for the period an 18 percent yearonyear increase, according to Tsai.
However, the country's exports to China/Hong Kong, members of the Association of Southeast Asian Nations, Japan and the European Union all fell last month, she noted.
Looking to the future, Tsai said uncertainties arising from the U.S. China trade disputes will continue to cast a shadow on the performance of Taiwan's outbound shipments.
However, with the approach of the peak season for electronics products and the U.S. threat to impose a 10 percent tariff on US$300 billion worth of Chinese products in September, Taiwan is expected to benefit from the situation by receiving more orders, Tsai explained.
Taiwan's exports in August will range from minus 0.5 percent to 1.5 percent, she forecast.
In the second half of this year, 5G, AI, and IoT industries are promising quartertoquarter growth and that should sustain Taiwan's exports, Tsai said.
Source: Focus Taiwan News Channel
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