Export orders received by Taiwanese companies fell by over 3 percent year-on-year in September due mainly to rising inflation and interest rates in major countries around the world cutting into end-user demand, the Ministry of Economic Affairs (MOEA) said Thursday.
Taiwan’s export orders for September totaled US$60.93 billion, down by 3.1 percent from a year earlier and reversing a 2 percent year-on-year rise in August, but remained the second-highest for the month in history, according to data compiled by the MOEA.
On a month-on-month basis, export orders rose by 11.6 percent, the data indicated, but after seasonal adjustments, the figure also declined by 0.4 percent.
In the first nine months of this year, export orders rose by 5.7 percent from a year earlier to US$509.07 billion, according to the MOEA.
The fall in orders received by Taiwan’s exporters in September was also due to inventory adjustments by clients and a high base of comparison for the same period last year, said Huang Yu-ling (黃于玲), head of the MOEA Department of Statistics, at a press conference.
However, the drop was offset to a certain extent by the launch of new smartphones by international brands and increasing demand for emerging apps, digital transformation and data processing in the cloud, Huang added.
Orders produced overseas
The data also showed that 54.8 percent of Taiwan’s export orders in September were produced overseas, up by 1.3 percent year-on-year, due mainly to growth in orders for information and communications products produced overseas.
Looking ahead, the anticipated pent-up demand for emerging apps such as high-performance computing, Internet of Things, and automotive electronics, the introduction of new international branded consumer electronics products in markets, and stocking requirements for the peak year-end consumption season in Europe and the United States are expected to help maintain the growth momentum of export orders, said Huang.
However, uncertainty created by the unabated pressure of global inflation and interest rate hikes, the ongoing war between Russia and Ukraine, and China’s ongoing zero-COVID policy might add to the downside of the global economy and trade and could hurt Taiwan’s export orders, according to Huang.
The MOEA estimated that Taiwan would see a 1.0-3.6 percent year-on-year fall in export orders in October with total exports expected to range from US$57.0 billion to US$58.5 billion.
To maintain growth for the entire year, export orders received in November and December will have to reach US$53.7 billion for each month, according to the statistics department.
Uncertain outlook
Although there are many variables to be observed, there is a possibility that the goal can be reached, said Huang.
The information and communications technology industry delivered the strongest performance in export orders for September, with the value rising by 5 percent from a year earlier to US$20.36 billion, the highest ever for the month.
Meanwhile, the electronic products industry received US$20.66 billion worth of export orders, up 6 percent from a year earlier, also the highest ever for the month, the MOEA said.
In September, orders placed by the United States, Europe and ASEAN nations rose by 2.8 percent, 9.6 percent and 12.5 percent, respectively, while orders from China and Hong Kong declined by 27.9 percent from a year earlier, worsening from August’s 25.5-percent drop.
Huang attributed the sharp fall in orders placed by China and Hong Kong to weakness in global end markets, China’s slowing economy, and its zero-COVID policy.
Source: Focus Taiwan News Channel