TAIPEI: Exports remained soft last month at US$25.63 billion, representing a fall of 3.8 percent year-on-year, but the pace of the decrease eased slightly, the Ministry of Finance (MOF) said here the other day in Taipei.
The figure is an improvement on the 11.7 percent contraction recorded in April, but the ministry attributed the difference to more working days last month and said that weak demand would persist in the near term.
“The global recovery has been weaker-than-expected, as the disappointing export data across most product categories indicate,” Department of Statistics Director Yeh Maan-tzwu told a news conference.
Electronics shipments declined 4.4 percent to US$8.18 billion, dragged by weak demand for DRAM chips, memory storage devices and solar batteries, ministry data show.
Exports of information and telecommunication products saw a sharper plunge of 50.9 percent and 36.4 percent respectively, data show.
Meanwhile, oil prices continued to depress exports of mineral, chemical and plastics products by double-digit percentages, although the pace of the fall has decelerated significantly as crude prices have begun to climb.
Oil price disruptions sapped exports last month by 4.9 percentage points, more than overriding the upswing in machinery, textile and optical exports, Yeh said.
Shipments to China, the largest destination for Taiwanese exports, shrank 8.2 percent year-on-year to US$10.14 billion.
This is due to an economic slowdown in the country and its increasing use of domestic supply chains cut dependence on electronic devices and critical components supplied by Taiwanese firms, the report said.
Exports to emerging markets in Southeast Asia and Europe also remained in negative territory, although the figures had improved, the report said.
“The lackluster global economy has had an unfavorable impact on most export-focused nations. South Korea, Singapore and Japan have seen steeper declines and their weak currencies have been ineffective in boosting demand,” Yeh said.
The nation’s shipments to the US gained 2.1 percent for the 17th consecutive month to US$3.07 billion last month, affirming a stable recovery in the world’s No. 1 end-market for technology products, the report said.
Prospects look poor in the near term, as international oil prices remain lower than a year ago, limiting the possibility of a comeback for petrochemical exports, Yeh said.
The Dragon Boat Festival next week might exacerbate the contraction this month, Yeh said.
However, Standard Chartered Bank and ANZ said exports are likely to improve in the second half, given the slowing pace of the retreat.
Imports fell by 5.4 percent to US$20.21 billion last month, lifting the trade surplus to US$5.4 billion, the report said.
For the first five months of the year, exports dropped 5.7 percent to US$119.36 billion, while imports shrank 14.7 percent to US$95.77 billion, the report said.
