Exports Declining in global slowdown

Exports Declining in global slowdown

The Ministry of France said that the exports of the nation contracted 0.5 percent last month to 28.2 billion US dollars, as the shipment of electronics picked up, but the products of non-technology have remained a drag in the global slowdown.

Director General of the Department of Statistics, Beatrice Tsai told a media briefing that the exports might stabilize for the remaining year, but a deadlock in the trade talks between the U.S. and China would limit their benefits for tech products of the high season.

This guarded optimism of Tsai came after the technology heavyweight the Semiconductor Manufacturing Corporation of Taiwan gave some positive guidance last month at one of the investors’ conference, claiming that the business would show improvement quarter by quarter.

In a report, the ministry said that the exports of semiconductor increased 5.9 per cent to 8.44 billion U.S. dollars from a year earlier, and outperforming a growth of 1.8 per cent for the export of overall electronics, which is the mainstay of the trade-focused economy of Taiwan.

Tsai said that the exports of the products of ICT soared 25.7 per cent to 3.69 billion U.S. dollars, as the firms that were relocating their production to Taiwan still continued to profit year-on-year comparisons and also the front-loading effect came into action.

She said that some of the clients of the Taiwanese manufacturers had strategically made inventory for avoiding possible tariff hikes, as an additional 10 percent tariff on 300 billion U.S. dollars of Chinese goods such as smartphones, garments, notebooks, and machinery has been scheduled to take effect from 1st September.

Tsai said that the order transfers were not evident even if there were any, Soft demand was continuing to weigh for memory chips on the market.