Views Article – Sharenet Wealth

Asia, News

Taiwan June exports seen down 3%, inflation -0.87%

* For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWCPIY%3DECI

* Exports median forecast -3% (prior month -2%)

* Imports median forecast -5.25% (prior month -3.5%)

* Balance median forecast $4 bln (prior month $4.72 bln)

* CPI median forecast -0.87% y/y (prior month -1.19%)

* Trade data due Tuesday, July 7, 4:00 p.m. (0800 GMT)

* CPI due Tuesday, July 7, 4:00 p.m. (0800 GMT)

TAIPEI, July 3 (Reuters) – Taiwan’s exports in June are likely to have dropped 3%, compared with a year earlier, as the COVID-19 pandemic continues to hit global demand for the island’s electronics exports, a median forecast of 13 analysts polled by Reuters showed.

Taiwan is one of Asia’s major exporters, especially of technology goods, and its export trend is a key gauge of global demand for technology gadgets worldwide. Its largest trading partner is China.

Forecasts ranged widely from a decline of 7.1% to a growth of 2.5% amidst uncertainties over the outbreak that has disrupted global supply chains and hit the growth outlook for the island’s tech manufacturers, including the world’s largest contract chip manufacturer, Taiwan Semiconductor Manufacturing Co Ltd (TSMC)

Exports in May dropped 2.0% from a year earlier to $27 billion, falling for a third straight month, but at a slower pace.

Its central bank last month further reduced the growth outlook for 2020 to 1.52% from a forecast of 1.92% in March, saying the pandemic could curb Taiwan’s exports.

Meanwhile, the poll showed inflation rate in June was seen at -0.87% from a year earlier, compared with -1.19% recorded in May. (Poll compiled by Carol Lee, reporting by Ben Blanchard; editing by Uttaresh.V)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.