Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Taiwan July exports jump, but uncertainty ahead

Published 08/08/2022, 06:53 pm
Updated 08/08/2022, 07:09 pm
© Reuters. FILE PHOTO: Cargo trucks work inside a container yard in Keelung, Taiwan, January 7, 2022. REUTERS/Ann Wang

(Corrects typo in headline)

TAIPEI (Reuters) -Taiwan's exports rose in July on sustained demand for technology products with shipments to China picking up, and while the government said the outlook was good for semiconductors it warned of growing uncertainly for the global economy.

Exports rose 14.2% in July from a year earlier to $43.32 billion, the Ministry of Finance said on Monday, the second highest monthly figure on record and up for the 25th consecutive month.

That was slightly slower than the 15.2% rise recorded in June, but better than the 11.65% expansion forecast from a Reuters poll.

The ministry attributed the growth pace to strong technology demand, especially for chips ahead of the year-end holiday shopping season, with supply chain problems easing.

July exports to China, Taiwan's largest trading partner, rose an annual 3% to $16.04 billion, after a 4.5% contraction in June, suggesting an easing of disruptions caused by COVID-19 outbreaks in the country.

Overall exports of electronics components in July rose 15.6% to $16.96 billion, with semiconductor exports jumping 17.4% from a year earlier.

Many companies expect global chip shortages to last at least for the rest of the year, which will continue to bolster Taiwanese semiconductor firms' order books.

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 electronics.

The finance ministry warned of a "high degree of uncertainty" for the global economy due the war in Ukraine and inflationary pressures, even with sustained chip demand.

"The growth momentum is gradually becoming conservative, which is bound to affect our country's foreign trade situation," it added.

However, ministry official Beatrice Tsai said total exports this year should still be able to exceed $500 billion.

July exports to the United States were up 24.8%, slower than a 27.9% jump recorded the previous month.

China's export growth unexpectedly picked up speed in July, offering an encouraging boost to the economy as its struggles to recover from a COVID-induced slump, but weakening global demand could start to drag on shipments in coming months.

© Reuters. FILE PHOTO: Cargo trucks work inside a container yard in Keelung, Taiwan, January 7, 2022. REUTERS/Ann Wang

Taiwan's July imports rose 19.4% to $38.29 billion, the third highest figure on record, better than economists' expectations of a 15.85% jump, after an increase of 19.2% in June.

Taiwan could see August exports increase by 8% to 12% from a year earlier, the finance ministry said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.