Taiwan Exports Slipped During April, Remains Above Forecast
April marks the 8th month in a row as Taiwain has dealt with its shrinking exports. According to experts, the demand for technology products is soft, which is ultimately affecting Taiwan's exports.
One of the biggest markets of Taiwan is China, and weaker demand for tech products means China is also relying less on Taiwan.
If we look at the numbers, the exports during April were down by 13.3% when compared with the same period last year. But if we look at the exports number from March, the drop was 19.1%, which tells us that things are improving.
Taiwan's Economy Is Facing Recession
Taiwan's economy is driven by exports, and the recent contraction has pushed it into recession. If we look at the numbers, the exports of electronic components dropped by 8.6% during April as compared to the earlier value of $15.74 billion.
Similarly, the exports of semiconductor chips are also down by 7.1%, which reveals an overall negative trend in the tech industry.
Looking ahead, the officials believe that export for May will decline by 12.5% - 15.5.5%. When compared with the numbers for April, it appears things will get even worse for Taiwan's export industry.
As per Taiwan's ministry, the weakness in the outbound shipments will remain until the last quarter of 2023.
In Taiwan, there are several firms like TSMC which supply chips to major tech companies such as Apple. So on that front, the Taiwanese firms do have contracts with major companies.
Overall, Taiwan's exports during April were recorded at $12.74 bln, which is a drop of 22%. But the finance ministry believes that the monetary tightening and global inflation are putting a drag on external demand.
That's why Taiwan's exports to the USA are also down by 10.3% during the same period of time. During March, the experts were down by 20.7%, which is a major contraction.
As per the experts, the current financial situation in the world is making it difficult for Taiwan to boost its exports. So unless things change on that front, the current situation in Taiwan will remain the same or even get worse.