Taiwan: Exports decelerate sharply in August
September 8, 2011
In August, exports decelerated to a 7.2% increase over the same month last year, the slowest growth since October 2009, to USD 25.8 billion. The expansion was less than half both the 17.6% rise recorded in July and market expectations of a 15.5% expansion. The reading reflected sharp decelerations in the top five export commodities, particularly in electronic products (July: +14.7% year-on-year; August: +3.6% yoy) and in plastic and rubber articles (July: +29.1% yoy; August: +6.5% yoy). The government maintains its expectations that exports will remain strong on the back of global demand for new electronic products, particularly information and communication items, which continue to expand at a robust pace. Imports expanded 6.4% in August, also slower than the 14.0% increase registered in July. The trade surplus narrowed from USD 3.3 billion in July to USD 2.6 billion in August.