Taiwan’s exports tumble for the first time in more than 2 years as mainland China demand slackens
- Taiwan’s exports fell 5.3 per cent in September from a year earlier to US$37.53 billion, logging a contraction for the first time since June 2020
- Exports to mainland China fell an annual 13.3 per cent to US$15.17 billion in September, after a 9.9 per cent contraction in August
Taiwan’s exports fell in September for the first time in more than two years on weak demand in mainland China and stagnant consumer spending, even as chip demand held up, with the government predicting more turbulence ahead.
Exports fell 5.3 per cent in September from a year earlier to US$37.53 billion, the Ministry of Finance said on Friday, logging a contraction for the first time since June 2020.
Exports to mainland China, Taiwan’s largest trading partner, fell an annual 13.3 per cent to US$15.17 billion in September, after a 9.9 per cent contraction in August, in a sign of the continued economic problems there.
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China will not release its trade data until October 14, after the end of the weeklong National Day holiday which began on October 1.
However, Taiwan’s overall exports of electronics components in September rose 2.4 per cent to US$16.99 billion, with semiconductor exports up 3.5 per cent from a year earlier.
Earlier on Friday, TSMC reported September sales leapt an on-year 36.4 per cent, though slipped 4.5 per cent compared to August, while on Thursday smaller competitor United Microelectronics Corp said sales last month rose 34.5 per cent year on year.
These problems may “highly impede our export performance in the fourth quarter”, it added.
September exports to the United States were down 2.1 per cent, compared with the 2.3 per cent rise recorded the previous month.
Taiwan’s September imports fell 2.4 per cent to US$32.51 billion, worse than economists’ expectations of a 7 per cent rise and after an expansion of 3.5 per cent in August.
Taiwan could see October exports contract in a range of 3 per cent to 6 per cent from a year earlier, the finance ministry said.