Taiwanese export growth likely to have slowed in July

Taiwanese trade and inflation data for July are set to be released this week. According to a DBS Bank research report, export growth is likely to have decelerated to 5 percent year-on-year from June’s 9.4 percent growth. A positive figure would be significant to help in affirming that the fall in June export orders was one-off rather than indicative of a contraction trend.

In the meantime, the first round of U.S. tariffs imposed on USD 34 billion worth of Chinese exports has taken effect on Taiwan’s July exports also needs to be monitored closely. On the prices front, CPI inflation is likely to have stayed at 1.4 percent year-on-year in July, in the midst of the sharp rises in import costs and upstream price pressures, added DBS Bank.