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Taiwan Trade Balance July 2020

Taiwan: Exports grow in July, trade surplus increases to 11-month high

Merchandise exports increased 0.4% in July in annual terms, contrasting with June’s 3.8% decline and marking the highest reading in the past five months. A jump in exports of electronic goods and information, communication and audiovisual products drove the overall increase, although this was partially offset by a fall in exports of base metals, machinery and plastics. Moreover, export orders—which typically lead actual exports by two to three months—climbed 6.5% in June, the latest month for which data is available, following May’s 0.4% increase, suggesting healthier trade momentum going forward.

Meanwhile, merchandise imports decreased 6.8% in July in year-on-year terms, following June’s 8.6% drop. Increased machinery imports and a slower decrease in imports of petroleum and other mineral products contributed to the softer fall. At the same time, electronic product imports continued to grow, albeit at a slower pace.

As a result, the trade surplus rose to an 11-month high of USD 5.4 billion in July, following June’s USD 4.8 billion reading, and jumping strongly from the USD 3.6 billion surplus recorded in the same month last year. The 12-month trailing trade surplus increased to USD 46.6 billion in July, which also marked an 11-month high, following June’s USD 44.8 billion reading.

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