Taiwan: Exports growth continues full speed ahead in July
August 7, 2017
Taiwanese export-oriented industries benefited from increased sales overseas in July on the back of the general upturn in global demand as well as strengthening dynamics in mainland China. Exports rose 12.5% in annual terms in July, totaling USD 27.1 billion, according to data from the Ministry of Finance (MOF). The expansion came in slightly below the 13.0% increase recorded in the previous month. Exports of electronic parts, the mainstay of Taiwanese shipments overseas, posted a solid performance in July. Despite ongoing geopolitical tensions with China, exports to the mainland and Hong Kong grew by 11.7% compared with the same month last year.
In line with the robust headline figure, the 12-month trailing sum of exports continued to trend higher as it reached a total of USD 300 billion in July, a figure that was 10.1% higher compared with the same period last year and an improvement from June’s USD 297 billion sum.
Meanwhile imports growth also accelerated this month from 3.7% in June to 6.5% in July, totaling USD 21.7 billion. July’s expansion brought imports to a total of USD 250 billion over the previous 12 months, up from USD 248 billion in June and an 11.4% increase year-on-year.
The slight deceleration in exports growth and the pick-up in imports growth prompted the trade balance surplus to total USD 5.4 billion in July, losing steam from June’s USD 5.8 billion record-high surplus but marking a considerably strong reading nevertheless. In the 12 months up to July, the trade surplus totaled USD 50.2 billion, well above June’s USD 48.5 billion print and the best result since October 2015.
Author: Lindsey Ice, Economist