TAIPEI (Reuters) – Taiwan’s exports likely fell 0.22% in July, down for a fifth straight month though at a slower pace as the COVID-19 pandemic hit global demand for the island’s electronic goods, according to the median forecasts of 14 analysts polled by Reuters.
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 4.5% to a growth of 3% in the midst of uncertainties over the coronavirus outbreak that has disrupted global supply chains and hit the growth outlook for the island’s tech manufacturers.
Exports in June dropped 3.8% from a year earlier to $27.13 billion, falling for a fourth straight month.
Taiwan’s economy recorded its deepest contraction in nearly 11 years in the second quarter, as the pandemic dampened tourism though global demand for the island’s tech exports helped counter the slowdown.
Meanwhile, the poll showed the inflation rate in July was seen at -0.44% from a year earlier, compared with -0.76% recorded in June.
(Poll compiled by Carol Lee; Reporting by Ben Blanchard; Editing by Rashmi Aich)