Taiwan April exports slip for 8th month, but beat forecasts
Business
Exports to the United States fell 10.3 per cent in April
TAIPEI (Reuters) - Taiwan's exports exceeded analyst forecasts but still contracted for the eighth straight month in April, as demand for its tech products remained soft, especially from its biggest market China.
Exports last month were down 13.3 per cent by value from a year earlier at $35.96 billion, the Ministry of Finance said on Monday.
The was better than a 19.1 per cent annual drop in March and topped a Reuters poll forecast for an 18.15 per cent contraction.
The island's export-driven economy contracted more than expected in the first quarter and slipped into recession.
Taiwan's total shipments of electronic components in April fell 8.6 per cent from the year before to $15.74 billion, with semiconductor exports down 7.1 per cent, it said.
Looking ahead, the ministry expects May exports to decline between 12.5 per cent and 15.5 per cent on year, while the drop in shipments in the first half is set to be the biggest in 14 years, it said.
The ministry also reiterated that the weakness in exports would not turn around until the fourth quarter.
Firms such as TSMC, the world's largest contract chipmaker, are major suppliers to Apple Inc and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.
At $12.74 billion in April, Taiwan's exports to China were down 22 per cent, after showing a 28.5 per cent annual drop in the prior month.
The finance ministry said global inflation and ongoing monetary tightening in major economies would continue to weigh on external demand, coupled with other risks such as the war in Ukraine and China-U.S. trade tensions.
Exports to the United States fell 10.3 per cent in April, after slumping an annual 20.7 per cent in March.
Taiwan's April imports, often seen as a leading indicator of re-exports of finished products, fell 20.2 per cent to $29.25 billion. That compared with economists' forecast of an 18.0 per cent decline and a 20.1 per cent fall in March.
