Taiwan’s foreign trade growth seems to have slowed slightly in August

Taiwanese exports and imports growth in August are expected to have slowed down. The country’s industrial output continued to be on an uptrend in July. Electronic parts and components, which is the most vital export industry in Taiwan, continued to grow strongly in July by 5.9 percent year-on-year after expanding 6.9 percent in the previous month.

The fundamental external demand is expected to hold in August. But the trade growth in July was quite strong and hence there might be certain corrections in August, noted Societe Generale in a research report. Moreover, there were some unfavorable base effects.

Therefore, both exports and imports growth in Taiwan are likely to have slowed in August. The trade balance is expected to have risen moderately from USD 3.6 billion in July to USD 4.2 billion in August, added Societe Generale.