With the local high tech sector impacted by China’s strict COVID-19 policy, Taiwan’s export orders fell by more than 23 percent from a year earlier in November, a steeper decline than previously forecast, the Ministry of Economic Affairs (MOEA) said Tuesday.
Data compiled by the MOEA showed export orders received by Taiwanese suppliers in November totaled US$50.14 billion, down 23.4 percent from a year earlier. The ministry had previously forecast that the amount would range from US$54.0 billion to US$56.0 billion, down 14.5-17.6 percent from a year earlier.
The year-on-year decline in November was the steepest since March 2009, when export orders dropped 24.3 percent from a year earlier, according to the MOEA.
However, although the November figure marked the third consecutive monthly year-on-year decline, it was still the third highest for November after US$57.8 billion in November 2020, and US$65.5 billion in November 2021, the MOEA said.
“Global demand remains concerned by growing inflation and geopolitical tensions,” Huang Yu-ling (???), head of the MOEA’s Department of Statistics, told reporters. “For Taiwanese tech gadget suppliers, production in China was also affected by the Chinese government’s COVID-19 policy, paving the path for a decline in export orders, which exacerbated the situation.”
In November, export orders received by Taiwanese electronics component makers fell 15.2 percent to US$17.2 billion amid inventory adjustments, while emerging technologies such as 5G applications, high performance computing devices and automotive electronics lent some support to the industry, the MOEA said. The spread of COVID-19 in China led to a year-on-year decline of US$3.1 billion in export orders for Taiwan in November, the MOEA added.
Also affected by China’s COVID-19 lockdowns as well as falling demand from end-users, export orders received by the local information and communications technology industry dropped 30.5 percent from a year earlier to US$14.73 billion in November, while export orders in the optoelectronics industry shed 43.0 percent from a year earlier to US$1.52 billion in wake of a supply glut in flat panels, the MOEA said.
Huang said old economy industries continue to face headwinds in falling demand.
Export orders received by the base metal and machinery industries fell 35.3 percent and 17.0 percent, respectively, from a year earlier to US$2.08 billion and US$1.82 billion in November, while export orders placed with the plastics/rubber industry and chemical industry also dropped 36.7 percent and 28.9 percent, respectively, year-on-year to US$1.66 billion and US$1.54 billion, according to the MOEA.
The United States continued to serve as the major buyer of Taiwan-made goods, placing US$16.73 billion in orders in November, down 16.7 percent from a year earlier, while China and Hong Kong placed export orders worth US$10.08 billion, down 37.3 percent from a year earlier, the MOEA said.
In the first 11 months of this year, Taiwan’s export orders totaled US$614.61 billion, an increase of 1.4 percent from a year earlier, MOEA data showed.
Although China eased its COVID-19 policy in early December, there are indications the number of infections are spiking, which could affect the world economy and global demand, further weakening Taiwan’s export order momentum in December, Huang said.
She forecast Taiwan’s export orders for December will range from US$47 billion to US$49 billion, down 27.8-30.8 percent from a year earlier, marking the fourth straight monthly year-on-year decline.
In the fourth quarter, Huang said, Taiwan’s export orders are expected to range from US$152.5 billion to US$154.5 billion, down 9.0-10.2 percent from the third quarter and also down 19.7-20.8 percent from a year earlier.
“That means there will be no peak season effects in the fourth quarter as usual due to global economic weakness,” Huang said.
According to Huang’s forecast, Taiwan’s export orders in 2022 will fall 1.6-1.9 percent from a year earlier to US$661.6-US$663.6 billion.
Source: Focus Taiwan News Channel