TAIPEI: Taiwan’s exports in September unexpectedly fell, but those of electronic components grew well as the Christmas shopping season nears and there’s optimism shipments during October will increase.
The drop is seen as a little bump, as most analysts feel the island’s economy has stabilized and its central bank – which earlier cut interest rates four times – will again hold them steady at its next policy meeting in December. Exports, which increased the two previous months, in September contracted 1.8 percent from a year earlier, the finance ministry said on Friday. A Reuters poll forecast a 3.2 percent expansion.
The government didn’t show concern over September’s drop, attributed in part to Typhoon Megi, which basically shut down for two days last month. “Despite disruption by the typhoon, electronics components continued to show growth,” ministry official Beatrice Tsai told a briefing. “It is only temporary. There is no need to worry about it too much.” The ministry said it expects trade performance to pick up in the fourth quarter.
Taiwan is one of Asia’s major exporters, especially of high-tech goods, and its export trend is a key gauge of global demand for technology gadgets. Exports of electronic components, including semiconductors, rose 16.8 percent in September from a year earlier, the ministry said. The only other products showing growth were information, communications and visual and audio ones, up 0.6 percent.
