Taiwan: Exports rebound but trade surplus narrows in October

In October, the trade surplus totaled USD 4.4 billion, according to data from the Ministry of Finance (MOF). The result was smaller than the USD 5.7 billion surplus recorded in the same month last year. In the 12 months up to October, the trade surplus totaled USD 46.6 billion (September: USD 48.0 billion surplus).

Exports rebounded and increased 9.4% annually, which pushed their value to USD 26.7 billion. The reading contrasted the 1.8% decline recorded in the previous month. The MOF signaled that October’s growth benefited from a low base of comparison and attributed the increase to higher shipments of semiconductor products, which surged 21% annually in October, as well as of communications productions, which increased a healthy 18.2%. The Ministry underlined that the increase in exports in October suggests that global trade is showing signs of recovery.

Meanwhile, imports totaled USD 22.4 billion in October, marking a notable 19.5% increase over the same month last year (September: +0.7% year-on-year). This marks the strongest increase in nearly four years.

FocusEconomics Consensus Forecast panelists expect exports to fall 0.1% in 2016 and to rise 1.3% in 2017.