Taiwan's export growth accelerated in July with sharp increases in electronic and mineral product shipments, data released by the Ministry of Finance showed on Monday.
Exports surged 38.5% year-on-year, following a 34.1% rise in June. That was the ninth consecutive annual growth and much better than the expected 31% increase. Imports growth outpaced exports growth by rising 42.7%. The latest figure exceeded 39.7% consensus forecast and followed a 40.4% growth in June.
Total exports amounted to US$23.90 billion and imports totaled US$21.74 billion. Hence, the trade balance was a surplus of US$2.16 billion. The surplus increased from last month's US$1.4 billion surplus. Economists had forecast US$1.35 billion surplus for July.
Exports of electronic products amounted to US$6.71 billion by trade value, up by 35.3% over the same month of last year. Those of basic metals and articles thereof amounted to US$2.17 billion, an increase of 38.8%. Overseas sales of optical and photographic instruments increased 62.4% to US$2.12 billion. The increase in mineral product exports was 52.8%.
Shipments to mainland China, which is the biggest export market of Taiwan, recorded an annual rise of 38.8% in July. Exports to the U.S. and Europe advanced 47% and 33.8%, respectively.
According to the Ministry of Economic Affairs, export order growth in June had slowed to 22.48% from around 34% in May. Export orders from the Netherlands recorded the steepest increase of 70.4% year-on-year.
Taiwan's economy relies heavily on the export sector. Official figures have shown that during the first quarter, the economy registered double-digit growth on the back of strong exports. The gross domestic product increased 13.3% year-over-year in the March quarter, faster than 9.1% expansion in the prior quarter, bolstered by a 42.2% jump in exports during the period.
As the economy recovered strongly from the recession, the central bank made 12.5 basis point hike in June, which took the discount rate to 1.375%, the secured loans rate to 1.75% and the unsecured loan rate to 3.625%. This was the first rate hike since June 2008.
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