Taiwan’s export orders slashed by gloom in US, EU as island marks 14 consecutive months of declines
- Orders for Taiwan’s exports fell by 4.6 per cent in October, year on year, to US$52.87 billion, the Ministry of Economic Affairs said on Monday
- ‘End-user demand in the US and Europe remains weak’, said one analyst, who pointed to the impact of high interest rates in the West
Global tech hardware hub Taiwan suffered a 14th consecutive month of decline of its export orders last month, with low odds of a quick turnaround until consumers in the West escape the impact of high interest rates, analysts said.
Orders for Taiwan’s exports fell by 4.6 per cent in October, year on year, to US$52.87 billion, the Ministry of Economic Affairs said on Monday.
“End-user demand in the US and Europe remains weak,” said Darson Chiu, a research fellow with the Taiwan Institute of Economic Research in Taipei. “If they don’t buy, then there are no orders.”
He blamed the impact of high interest rates in the West, which often raise consumer prices due to the higher costs of borrowing.
We expect the US and European economies to grow very little in the coming quarters, as higher interest rates start to bite
The European Union’s economy would expand by just 0.6 per cent this year before expanding by 1.3 per cent in 2024, according to forecasts from the European Commission.
