Taiwan’s exports rise 4.3% in April Y-Y

Taiwan’s exports rose for a sixth straight month in April, reaching $37.5 billion, the 4.3 per cent year-on-year growth fell short of expectations of 10.2 per cent, due to a slump in Chinese demand as reported by Reuters on Wednesday.

This muted growth comes despite a surge in US shipments, with demand for AI-related products driving an 81.6 per cent increase.

The surge almost matched the total export value to China, which saw a concerning dip of 11.3 per cent.

The Ministry of Finance remains optimistic, predicting stable growth in exports for the first half of 2024. They believe demand for AI and high-performance computing products will counter the drag caused by rising interest rates and global geopolitical tensions.

Taiwanese tech giants, particularly the world-leading chipmaker TSMC, benefit significantly from booming US demand.

These companies are key suppliers to major tech players like Apple, Nvidia, and other US giants.

While overall exports showed some growth, electronic component exports, a crucial sector for Taiwan, witnessed a significant decline.

Total shipments of electronic components fell 17.7 per cent, with semiconductors themselves dropping 18.8 per cent year-on-year.

Taiwan’s import figures continued their upward trend, with a 6.6 per cent increase to $31 billion in April. This figure was slightly lower than projected by economists of 7.6 per cent.

The Finance Ministry predicts a rebound for May exports, with a projected growth of seven per cent to 10 per cent compared to the previous year.

However, the sustained slump in China and the decline in electronics exports remain points of concern for Taiwan’s economic outlook.