Taiwan's June export growth reflects global economic recovery: ANZ
July 9, 2014, 12:01 am TWN
TAIPEI--The 1.2-percent annual growth in Taiwan's exports in June indicates that the global economy is recovering, according to Australia and New Zealand Banking Group Ltd. (ANZ).
"The June data were in line with market expectations and reinforced our belief in the recovery of the global economy," the bank said in a research note Tuesday.
Demand from the United States and Europe warmed up in the second quarter of the year, growing 7.2 percent and 6.4 percent from a year earlier, respectively, while exports to China and Hong Kong also grew 4.9 percent year-on-year during the same period, ANZ said.
Electronics remained the key driver of Taiwan's exports in June, growing 9.9 percent from a year earlier, while basic metal products and machinery also registered strong year-on-year gains of 12.2 percent and 12.7 percent, respectively.
The electronics and information and communications technology sector will help sustain Taiwan's external demand throughout the year, especially with launches of new smartphone models expected during the second half of the year, ANZ said.
Despite the optimistic economic outlook, the bank warned that the political environment will face uncertainties, given the nationwide municipal elections to be held in late November.
"Any deterioration in cross-strait relations will hurt Taiwan's long-term competitiveness. We need to be vigilant to this political risk in the future," ANZ said.
Taiwan's exports in the second quarter totaled US$80.07 billion, while imports of capital equipment amounted to US$9.76 billion, both the highest level seen in 12 quarters, official statistics showed.
Because the second half of the year is traditionally the peak season for exports, Taiwan's exports in the third quarter are expected to grow by more than 5 percent from the second quarter, according to the Ministry of Finance.