Taiwan’s export orders fell for the fourth time in five months in April as Europe’s debt turmoil and China’s growth slowdown hurt demand for its products.
Orders, an indication of shipments in the next one to three months, slipped 3.52 percent from a year earlier, after a 1.58 percent decline reported earlier for March, a Ministry of Economic Affairs report in Taipei showed today. The median of 10 estimates in a Bloomberg News survey was for a 0.5 percent gain.
Asian nations are grappling with China’s growth slowdown and an uneven U.S. recovery, as well as risks stemming from Greece’s inability to form a new government, which could reverse progress made in resolving Europe’s debt turmoil. Exports make up about two-thirds of Taiwan’s economy, which probably expanded at the slowest pace in more than two years in the first quarter, according to another Bloomberg survey, limiting the scope for interest-rate increases.
“European demand may deteriorate further due to the ongoing sovereign-debt crisis,” Ma Tieying, an economist at DBS Bank in Singapore, said before the report. While orders from the U.S. should remain solid, those from China are “expected to stay at depressed levels,” she said in a note.
The value of export orders was $36.09 billion last month, today’s report showed.
Orders from China fell 7.8 percent in April from a year earlier, while demand from Europe slipped 0.78 percent. Purchases from the U.S. rose 0.79 percent.
Orders for electronics slipped 2.85 percent from a year earlier, and demand for information technology and communications products fell 4.63 percent.
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