TAIPEI – Taiwan’s exports fell for a ninth consecutive month in May, although meeting expectations, in a symptom of anemic demand for the island’s tech products from China and global markets, with matters not expected to improve until the third quarter.
Exports last month were down 14.1 percent in value on the year, at $36.13 billion, the finance ministry said on Wednesday. That was slightly worse than an annual fall of 13.3 percent in April and in line with a Reuters poll forecast for a 14.4- percent contraction.
Taiwan’s export-reliant economy contracted more than expected in the first quarter, slipping into recession.
Taiwan slips into recession as Q1 GDP contracts worse than expected
Total shipments of electronic components in May fell 9.9 percent from the year before to $15.05 billion, with semiconductor exports down 8 percent, the ministry said.
The outlook remains dim, the ministry said, adding that it expected June exports to shrink between 14 percent and 16.5 percent on year.
A pick-up in exports may not occur until September at the earliest or as late as November, it added.
Firms such as TSMC, the world’s largest contract chipmaker, are major suppliers to Apple Inc, Nvidia and other global tech giants, besides providing chips for auto companies and lower-end consumer goods.
United Microelectronics Corp, a smaller competitor of TSMC’s, reported on Tuesday that May sales dropped 23.1 percent on the year.
At $12.74 billion in May, Taiwan’s exports to China were down 19.4 percent, after the prior month’s drop of 22 percent on an annual basis.
Earlier on Wednesday, China reported that its May exports shrank much faster than expected as global demand faltered.
China’s exports tumble in May, imports slow
Taiwan’s finance ministry has said global inflation and monetary tightening in major economies would continue to crimp external demand, coupled with risks such as the war in Ukraine and China-U.S. trade tension.
Exports to the United States fell 3.5 percent in May, after slumping an annual 10.3 percent in April.
Taiwan’s May imports, often seen as a leading indicator of re-exports of finished products, fell 21.7 percent to $31.25 billion. That compared with economists’ forecast of a 20.8-percent decline and a 20.2- percent fall in April.
Taiwan cuts GDP forecast, export outlook as global demand weakens