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Taiwan April exports slip for 8th month, but beat forecasts

Published 05/08/2023, 05:22 AM
Updated 05/08/2023, 06:18 AM
© Reuters.  FILE PHOTO: Trucks wait to be loaded on with containers at a port in Keelung, Taiwan, June 10, 2020. REUTERS/Ann Wang/File Photo/File Photo
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By Roger Tung and Faith Hung

TAIPEI (Reuters) - Taiwan's exports exceeded analyst forecasts but still contracted for the eighth straight month in April, as demand for its tech products remained soft, especially from its biggest market China.

Exports last month were down 13.3% by value from a year earlier at $35.96 billion, the Ministry of Finance said on Monday.

The was better than a 19.1% annual drop in March and topped a Reuters poll forecast for an 18.15% contraction.

The island's export-driven economy contracted more than expected in the first quarter and slipped into recession.

Taiwan's total shipments of electronic components in April fell 8.6% from the year before to $15.74 billion, with semiconductor exports down 7.1%, it said.

Looking ahead, the ministry expects May exports to decline between 12.5% and 15.5% on year, while the drop in shipments in the first half is set to be the biggest in 14 years, it said.

The ministry also reiterated that the weakness in exports would not turn around until the fourth quarter.

Firms such as TSMC, the world's largest contract chipmaker, are major suppliers to Apple Inc (NASDAQ:AAPL) and other global tech giants, as well as providers of chips for auto companies and lower-end consumer goods.

At $12.74 billion in April, Taiwan's exports to China were down 22%, after showing a 28.5% annual drop in the prior month.

The finance ministry said global inflation and ongoing monetary tightening in major economies would continue to weigh on external demand, coupled with other risks such as the war in Ukraine and China-U.S. trade tensions.

© Reuters.  FILE PHOTO: Trucks wait to be loaded on with containers at a port in Keelung, Taiwan, June 10, 2020. REUTERS/Ann Wang/File Photo/File Photo

Exports to the United States fell 10.3% in April, after slumping an annual 20.7% in March.

Taiwan's April imports, often seen as a leading indicator of re-exports of finished products, fell 20.2% to $29.25 billion. That compared with economists' forecast of an 18.0% decline and a 20.1% fall in March.

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