Taiwan's Export Decline Slows Down, Indicating Potential Recovery
In a positive development suggesting a potential turnaround, Taiwan's export figures for April show a slower decline compared to the previous month. This signals a possible bottoming out of the significant global decrease in demand for electronics.
According to the Ministry of Finance, overseas shipments in April recorded a 13.3% drop compared to the same period last year, totaling $36 billion. This result exceeded economists' expectations, as a Bloomberg survey projected a 19.4% decline. Furthermore, it marked an improvement from March's 19.1% fall.
Nevertheless, this decline in exports extends the trend for the eighth consecutive month, highlighting the substantial impact of the global economic downturn on Taiwan's trade-dependent economy.
In terms of imports, there was a 20.2% decrease in April compared to the previous year. Although this result surpassed the median estimate of a 22.6% decline, it still represents the most rapid pace of decline since 2019. The trade surplus reached $6.7 billion, the highest since October 2020.
While some of Taiwan's key trading partners experienced a continued slump in April, the year-on-year decline was less severe compared to previous months. For instance, exports to China and Hong Kong fell by 22%, showing improvement from March's 28.5% drop. Similarly, shipments to the US declined by 10.3%, which was about half the decrease observed in March.
The weak demand for semiconductors, which is the primary driver of Taiwan's exports, has contributed to the pessimistic outlook for the country's chipmaking industry. This, coupled with sluggish manufacturing activity and concerns about inflation, has further dampened Taiwan's economic prospects.
The country's economy entered a recession in the last quarter, with a 3.02% decline in gross domestic product compared to the same period a year ago.
