Taiwan: Merchandise exports surge again in July
Merchandise exports soared 34.7% on an annual basis in July, on the heels of June’s 35.1% jump, amid further strong growth in electronics exports. Meanwhile, merchandise imports shot up 41.0% in annual terms in July (June: +42.3% yoy) on higher energy imports.
As a result, the merchandise trade balance improved from the previous month, recording a USD 5.9 billion surplus in July (June 2021: USD 5.1 billion surplus; July 2020: USD 5.5 billion surplus). Lastly, the trend pointed up, with the 12-month trailing merchandise trade balance recording a USD 69.8 billion surplus in July, compared to the USD 69.4 billion surplus in June. Export orders—which typically lead actual exports by two to three months—climbed 31.1% in June, the latest month for which data is available, suggesting strong trade momentum going forward.
Annual growth rates for exports will likely ebb in H2 as the base effect grows notably less favorable. However, continuing strong global semiconductor demand will ensure underlying momentum remains solid, and the external sector should remain an important growth driver.