Taiwan’s exports fall at fastest pace in 7 years, as growth forecasts weaken for 2023

Exports from global hi-tech manufacturing hub Taiwan fell in November at their steepest rate in almost seven years, largely because of declining shipments to major markets including mainland China, signalling trouble ahead for the island economy.

Taiwanese exporters shipped US$36.13 billion worth of goods last month, the Ministry of Finance said in a statement on Wednesday, down 13.1 per cent on November last year. Exports have not fallen so dramatically since a 13.2 per cent year on year slide in January 2016.

Late last month, government officials lowered Taiwan’s 2023 gross domestic product forecast to 2.75 per cent from 3.05 per cent due to the highly unstable outlook for the global economy.

“Taiwan’s external sector is being hit hard by the slowdown in global demand,” said Gareth Leather, senior emerging Asia economist with Capital Economics in London.

“With the global economy set to fall into recession next year and the pandemic-driven boom in consumer electronic demand reversing, exports will weaken further.”

The island’s exports to mainland China and Hong Kong fell 20.9 per cent year on year last month to US$36.56 billion, the steepest decline in shipments to major trading partners, data showed. Exports to the mainland declined 0.1 per cent from January through November over the same period a year ago.