Exports in Taiwan slid by 8.3% in October 2008 due to falling demand from the leading exports markets, corresponding to the weakening consumer confidence.
As per the ministry of finance, exports from Taiwan declined by 8.3% in October 2008 on a YOY basis, reported AFP.
Exports from Taiwan amounted to US$ 20.81 Billion in October 2008, 1.88 Billion down from the past year. Electronic products exports fell 8.4% to US$ 5.51 Billion while the precision product sales decreased by 24.1% and reached US$ 1.50 Billion. Also, the country’s exports to Hong Kong and China slipped 19.9% and that to the US lost 11.4%. However, the country’s exports jumped 11.9% to $ 225.24 Billion during Jan-Oct 2008 over the same period in previous year.
The decline in the export industry of Taiwan was led by the cut down in the demand from the export markets of the country, following the global economic meltdown. This crisis has brought a significant reduction in the orders for precision and electronic items. In particular the US and Europe, the leading markets for Taiwan’s exports, have brought a considerable reduction in their orders for laptops, televisions and mobile phones.
Moreover, regardless of the declining value of Taiwanese currency in comparison to the major currencies of the world, the export sector of the country is not able to register growth. One of the major factors for this is that the consumers are feeling reluctant due to instable currency rates and commodity prices in Taiwan. Severe condition of the credit market is also hampering the country’s exports.
The import and export sector of Taiwan accounts for 40% to 50% share of the country’s GDP, and hence, it is regarded as the backbone of the national economy. Hence, plunge in the exports is not going to help the economic position of the country. Also, this slump is considered just as a beginning for the export sector of Taiwan, corresponding to doubtful global economy.
According to a Research Analyst at RNCOS, “The economic growth of Taiwan depends highly on exports, especially on expensive electronic products, plastic and computer chips. The slumping demand will certainly put negative impact on the trade income of the country. Further, the companies are likely to approach for the policies to reduce the cost so as to make up for the loss. Consequently, the rate of employment will also get affected adversely.”
