Taiwan export orders hit by steepest drop in 32 months as China-US trade war takes its toll across Asia
- Taiwan export orders expected to continue to drop throughout March on weaker demand due to slowing global economy
- Orders suffered 10 per cent drop in December compared with the same period 12 months earlier
Taiwan export orders posted the steepest decline in 32 months in December, foreshadowing a steep slowdown in manufacturing economies around Asia through the first half of the year as they face the spillover from the Sino-US trade dispute and shifts in demand for consumer electronics.
Export orders fell by US$5.09 billon, or 10.5 per cent, last month compared to December 2017, according to data released Monday by the Ministry of Economic Affairs.
The drop was more severe than forecast and will lead to further declines in orders through March before the start of a “slow uptrend” in the second half of the year, ministry department director Lin Lee-chen told a news conference.
“The figures reflect that the hit from foreign demand is big, and if it gets any bigger all the export-driven economies need to be more careful,” said Liang Kuo-yuan, president of Taipei-based think tank the Polaris Research Institute.
Export orders often foreshadow actual shipments from Taiwan as well as trends in exports from other Asian manufacturing hubs such as Japan, South Korea and industrialised Southeast Asian countries. Sino-US trade tensions, declining interest in smartphone replacement and world oil prices underpin the trends.