TAIPEI (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) <2330.TW>
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)