Taiwan: Merchandise exports fall at a quicker rate in November
Merchandise exports dived 13.1% on an annual basis in November, on the heels of Octobers 0.5% decrease. Novembers result marked the worst drop since January 2016, and was driven by lower exports of all major subcomponents. Exports to China, the U.S. and Europe fell by double digits. Meanwhile, merchandise imports contracted 8.6% in annual terms in November (October: +8.2% yoy), marking the weakest result since June 2020.
As a result, the merchandise trade balance improved from the previous month, recording a USD 3.4 billion surplus in November (October 2022: USD 3.0 billion surplus; November 2021: USD 5.8 billion surplus). Lastly, the trend deteriorated, with the 12-month trailing merchandise trade balance recording a USD 52.9 billion surplus in November, compared to the USD 55.2 billion surplus in October.
Exports are likely to remain downbeat in the months ahead as momentum eases in the developed world and economic activity in China is disrupted by the pandemic. However, sustained global demand for advanced technology such as 5G will sustain semiconductor exports to an extent. In addition, the Chinese governments recent shift towards living with Covid-19, together with an eventual rebound in the U.S. and Europe, will support exports in H2 2023.