Taiwan’s export growth suddenly sputters, but AI shipments offer ‘cushion’ amid subdued electronics market
- Taiwan exports grew by a mere 1.3 per cent in February, although it still represented a fourth straight month of gains after having slipped for most of 2023
- Exports fell due to the timing of the Lunar New Year last month, and analysts say Taiwan is still poised to post overall export growth this year
The value of exports from global tech powerhouse Taiwan grew by a mere 1.3 per cent in February, year on year – weaker than in the prior three months, with a big drop-off from January’s 18.1 per cent rise.
But analysts pointed to the temporary effects of a long holiday and said global demand for artificial intelligence-driven (AI) gear looks to keep exporters busy for most of 2024.
The value of overseas shipments from Taiwan totalled US$31.43 billion in February, the Ministry of Finance said on Friday.
Last month’s exports reflected “the timing of the Lunar New Year”, Dutch financial group ING said on Friday, as Taiwan took a week off for the festivities.
Overall, analysts generally say Taiwan is poised to see its exports grow in 2024. The island, with its vibrant and long-cemented tech sector, thrives on shipments of phones, PCs and components such as semiconductors.