Taiwan’s foreign trade declines in August

2015/09/09

Taiwan’s foreign trade fell 15.66 percent year on year to US$43.9 billion in August amid challenging conditions at home and abroad, according to the ROC Ministry of Finance Sept. 7.

MOF statistics reveal that the country’s exports decreased 14.8 percent to US$23.93 billion, while imports dropped 16.7 percent to US$19.97 billion. Net trade surplus was down 3.6 percent to US$3.96 billion.

Yeh Maan-tzwu, director-general of the MOF Department of Statistics, said the third consecutive double-digit contraction was due to falling raw material prices and slumping demand on the global front. “A relatively high comparison from last year also played a part.”

According to Yeh, August marks the seventh month in a row of downturn for local exports. “Among Taiwan’s 11 major shipment items, transportation equipment is the only one reporting a gain of 11.6 percent on the back of 31.3 percent surge in bike shipments.”

Of the 10 declining export items, basic metals, chemicals, electrical equipment, electronics, information communications technology products, machinery and opticals all suffered double-digit tail-offs, while minerals tumbled nearly 46 percent.

“Uncertainties in major markets, especially mainland China, are taking a toll on Taiwan’s key exports,” Yeh said. “The scheduled maintenance of production facilities at local petrochemical firms is also a contributing factor.”

For the first eight months of the year, exports decreased 8.8 percent to US$189.89 billion, while imports sank 15.5 percent to US$156.56 billion. Accumulated trade surplus soared 45.4 percent to US$33.33 billion.

Yeh said she expects to see light at the end of the tunnel beginning this month as global heavyweights deplete inventories and facility maintenance programs wrap up.

Taiwan’s weak export performances are mirrored by neighboring countries, Yeh said, citing official statistics showing the year-to-date exports of Japan, Singapore and South Korea down 8.2 percent, 13 percent and 6.1 percent, respectively.

But on a brighter note, imports of consumer products like compact vehicles and handsets remain strong. In particular, inbound shipments of capital equipment rose 21.9 percent for the month, the third gain in a row.

“Imports of machinery and transportation equipment surged 33.4 percent and nearly 450 percent from a year ago as local airlines look to add planes to their fleets and electronic heavyweights rack up capital investment,” she said. “These developments augur well for the country’s exports going forward.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=234706&ctNode=2194&mp=9)