TAIPEI- Taiwan’s exports fell unexpectedly in October on weak global demand for the island’s technology products, as sluggish sales to China offset strong shipments to the United States ahead of the year-end holiday shopping season.
October exports fell 4.5 percent in value from a year earlier to $38.11 billion, the finance ministry said on Tuesday, missing analysts’ forecasts in a Reuters poll for a 1.05 percent expansion.
Shipments also worsened on the 3.4 percent expansion in September.
For November, the ministry predicted exports would be between +3 percent to +6 percent.
Strong technology driven by artificial intelligence (AI) was not enough to offset sluggish global demand for consumer electronics, the ministry said, adding that a high base from a year earlier also contributed to the decline in exports.
The ministry said, however, Taiwan’s exports should “stabilize” in the near future thanks to new technologies including AI and new product launches by international vendors.
“The dawn is breaking,” ministry official Beatrice Tsai told reporters, describing the exports outlook for this quarter.
Taiwan’s export-dependent economy grew faster than expected in the third quarter, helped by domestic consumption, though exports remained weak as flagging global demand hit sales of the island’s hi-tech products.
The ministry expected exports this year to drop about 10 percent , the biggest dip in eight years.
In October, Taiwan’s total shipments of electronic components fell 7.4 percent from the year before to $15.64 billion, with semiconductor exports down 6.5 percent.