Taiwan’s exports fall drastically

Taiwan’s exports have experienced a drastic fall and are at a seven year low, with the latest estimates being that they will be down 12.1 per cent from a year earlier.

The steepness of the fall is due to the global economic downturn as demand for electronics products has fallen.

In November Taiwan’s exports totalled $19.2 billion, down from $20.8 billion in October as shipments had fallen 8.3 per cent as even the run up to Christmas has not stopped the slump.

Demand from China and the US is very unlikely to recover as all the aforementioned economies are still receding and it seems that all of Asia’ export dependent countries are facing a recession.

Shipments to China and Hong Kong which are Taiwan’s biggest markets have fallen by 38.5 percent last month and are not showing any signs of recovery.

Overseas shipments account for 70 percent of gross domestic product and so far the island has experienced its first contraction in the third quarter, the first time since 2003.

Taiwan Semiconductor Manufacturing Co which is the world’s largest producer of chips has cuts its fourth-quarter sales and profit figures and has attributed this to a severe drop in demand.

The drop in exports may bring Taiwan’s central bank into action so as to drop interest rates further even though there have already been four reductions September as inflationary pressures continue to ease.

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