Taiwan exports show growth in January, led by ICT, electronics

TAIPEI - Taiwan’s external demand remains strong. Export orders grew 8.1% y/y in January, from 4.5% in December 2014. Growth was mainly led by ICT (19.7% y/y) and electronics (14.1%). Chemicals (-11.9%) underperformed, as petrochemical buyers remain cautious. The low base in January 2014 (fewer working days due to Chinese New Year) should have also contributed to the strong result.

Geographically, strong demand was seen from the US and Europe, from where orders grew 24.7% y/y and 16.8% y/y respectively, from 12.8% and 9.7% in December, reflecting strong demand for ICT/electronics. Export orders to Mainland China and Hong Kong rebounded to 3.9% from -1.1% in December.
ANZ Bank says the data on export orders data bodes well for Taiwan’s growth and February’export numbers to be released next week. “(But) imports could continue to shrink on the back of the lower oil import price, resulting in a widening of the trade surplus and higher GDP growth.”  www.live.anz.com (ATI).