Taiwan Trade Surplus Continues To Grow In August

Taiwan has increased their international trade surplus over August reflecting growing exports and the ongoing development of the Taiwan economy, according to official figures released today by the government Finance department.

The trade surplus is a considerable economic indicator, linked to currency valuation and economic health in general. The surplus reflects the difference between total imports and total exports in the economy over a given period, which when positive is generally considered to be beneficial for manufacturing businesses, particularly when in line with a weak currency.

In the figures, released by the Taiwan Ministry of Finance today, the Taiwan trade surplus was reflected as having grown to $3.3billion through the course of August, up from just $450 million only last month.

The news reflects rapid growth and expansion in the region over the last month, which has seen exports increase in line with a reduction in imports to increase the overall surplus in the balance of trade.

Exports were up beyond analyst’s early predictions, growing by 10.5% over the year on August as compared to a widely predicted growth of 10.1% for the same period. According to the figures, exports now stand at $21.4 billion, mainly in manufacturing and service sectors.

The number of imports in to the Taiwan economy was also down through the month of August, losing 0.3% on last month’s figures, highlighting increased efficiency in domestic consumption rates.

Cumulatively, this year has seen exports grow by 8% and imports grow by a slower 6% overall in the economy, in line with the wider growth figures. In total, the cumulative trade surplus over the year now rests at $14.3 billion.

With the economy continue to grow and perform beyond analyst predictions, inflation could pose a potential threat to the growing Taiwan economy – an issue which authorities will be considering as top priority.

Story link: Taiwan Trade Surplus Continues To Grow In August