Taiwan exports witness double-digit growth first time since January 2013 led by electronics sector

Exports in Taiwan witnessed a double-digit growth for the first time since January 2013, led by electronics sector.

The external trade data out yesterday surprised on the upside. Exports grew 12.1 percent y/y in November, the first double-digit rate seen since January 2013 and a further rise compared to 9.4 percent in October.

Capital goods imports also increased 13.2 percent, on top of a very strong 47.6 percent in the previous month. The electronics sector remained the key driver. Exports of electronics components maintained a strong growth of 26.9 percent, while imports of semiconductor equipment continued to surge 34.8 percent.

The November trade figures, together with the solid results seen in manufacturing PMI, corroborate the view that growth recovery will be sustained in the current quarter. There is a good chance that GDP growth will pick up further on the y/y basis in Q4 2016, to about 2.5 percent.

"For the whole year of 2016, we now look for an average growth of 1.5 percent (old estimate: 1.3 percent). The 2017 growth forecast remains unchanged at 2.1 percent," DBS commented in its latest research report.