Taiwan’s exports experienced a year-over-year decline for the second consecutive month in October, with the downward trend likely to continue amid weak global demand, the Ministry of Finance (MOF) said Tuesday.
MOF data showed that the country’s exports in October dropped 0.5 percent to US$39.93 billion compared with the same month in 2021.
Imports surged 8.2 percent year-over-year to US$36.95 billion, while Taiwan’s trade surplus for October dipped 50 percent compared to the same month last year to reach US$2.99 billion, according to the MOF.
From January to October, Taiwan’s outbound sales totaled US$407.66 billion, up 12 percent from a year earlier, while imports hit US$364.00 billion, up 17.0 percent.
Meanwhile, Taiwan’s trade surplus over the 10-month period stood at US$43.67 billion, a year-over-year decline of 17.4 percent.
At a news conference, Beatrice Tsai (蔡美娜), director-general of the MOF Department of Statistics, said that although the export performance in October was better than expected, the overall downward trend was likely to continue.
She attributed the fall mainly to a high comparison base, inflation, and a worldwide rate-hike cycle.
Additionally, Tsai said China’s weakening economy had led to stagnant demand for consumer electronic gadgets and inventory adjustments in the global supply chain.
However, this was offset somewhat by demand for high-performance computing devices, automotive electronics, and hardware for data centers, as well as pull-in delivery of orders of new global smartphone brands to the month, Tsai added.
In October, Taiwan’s exports of electronic components rose for the 42nd consecutive month, up 15.9 percent year over year, including a 19.4 percent increase in semiconductor exports.
Although exports of information technology and audio-visual devices grew 11.4 percent year over year to US$6.55 billion, optical device exports dropped 42 percent from a year earlier to US$7.10 billion — the steepest decline in nearly 13 years.
MOF attributed the slump to worsening inventory adjustments and sluggish sales of consumer electronic products.
Exports of base metals dropped 27.6 percent year-on-year to US$2.78 percent, while plastic and rubber products fell by 28.7 percent to US$1.88 billion, and chemical items and textile products dropped by 18.5 percent and 23.5 percent, respectively, to US$1.78 billion and US$623 million, according to the MOF.
By country, exports to China and Hong Kong, the largest buyer of Taiwan-made goods in October, fell 9.2 percent from a year earlier to US$14.72 billion, the lowest in nearly 20 months.
However, exports to four other major markets rose, with Japan posting the steepest growth of 18.7 percent to US$3.14 billion on the back of solid demand for Taiwan-made electronic components.
Meanwhile, ASEAN countries purchased US$6.69 billion of goods from Taiwan in October, an 11 percent year-over-year increase.
Exports to the U.S. and European markets rose by 3.1 percent and 1.5 percent, respectively, from a year earlier to US$6.41 billion and US$3.81 billion in October, the MOF added.
Looking ahead, anticipated demand for emerging apps and end products as well as the year-end shopping season in China, the U.S., and Europe is expected to bolster Taiwan’s exports, the ministry said.
However, variables such as high global inflation, rising interest rates, the ongoing war between Russia and Ukraine, the COVID-19 situation, and the China-U.S. trade war could continue to deepen concerns about the prospects of the global economy and affect Taiwan’s exports in the fourth quarter, according to the ministry.
Tsai noted that Taiwan’s exports in the second half of this year would not be as robust as the first half and could see the first decline in H2 from H1 in nearly seven years.
In addition, due to a high base of comparison last year, exports in the fourth quarter of this year are likely to dip from a year ago, Tsai added.

Source: Focus Taiwan News Channel