January export orders up 3.4 percent in Taiwan

2015-02-11

Taiwan’s export orders rose 3.4 percent year on year in January to US$25.12 billion, buoyed by global demand for electronics, machinery, optical devices and transport equipment.

“January saw Taiwan’s export performance outstrip that of South Korea and mainland China, which declined 0.4 percent and 10.8 percent, respectively,” said David Hsu, deputy director-general of the Bureau of Foreign Trade under the Ministry of Economic Affairs, Feb. 9.

“This strong showing is remarkable given the relatively conservative global business climate, especially after International Monetary Fund Managing Director Christine Lagarde’s warning of a new era of economic mediocrity.”

Orders for nine of Taiwan’s 11 major export sectors registered growth in January, with four reporting double-digit increases. Machinery led the way at 18.6 percent, followed by optical devices at 17.1 percent.

Electronics, which account for 33.2 percent of Taiwan’s overall exports, surged 11.9 percent, while transport equipment also saw 11.6 percent growth compared with last year.

But orders for chemicals and minerals dropped 9.8 percent and 48.4 percent, respectively, due to lackluster demand, which partially compromised Taiwan’s January export performance.

Mainland China, including Hong Kong, remained the top source of orders, up 11.8 percent to US$10.34 billion. The U.S. came in second with an increase of 8.1 percent to US$2.88 billion.

Exports for Japan rebounded after the December slump, growing 2.7 percent to US$1.7 billion. Orders from Europe and the Association of Southeast Asian Nations, however, hit a rough patch in January, dropping 12.6 percent to US$2.12 billion and 7.5 percent to US$4.21 billion, respectively.

Looking ahead, Hsu said the bureau is bullish on export orders for the next few months, with further advances expected following the introduction of more mobile devices and continuous development of the Internet of Things.

“We must remain cautious, nevertheless, as slow economic growth in Europe and the emerging markets of Asia may pose uncertainty to Taiwan’s exports performance.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=227314&CtNode=413)