Taiwanese exports climb by most in more than 30 years

Shipments abroad increased 75.8 percent from a year earlier, the Ministry of Finance said in Taipei yesterday, beating the median of five estimates in a Bloomberg survey for a 62.9 percent gain. Imports advanced 114.7 percent for a trade surplus of US$2.49 billion.

The rise in overseas sales, which make up more than half of the economy, adds to signs that Taiwan is emerging from its worst recession. Even so, yesterday's figure may overstate the strength of the revival as exports plunged 44.1 percent in January 2009 and future demand may be curbed after China tightened credit. “Export demand is quite strong and was boosted by demand ahead of Chinese New Year, which may be limited in February,” said Ma Tieying, an economist at DBS Bank in Singapore. “The major uncertainty is China, which is Taiwan's largest export partner and has been taking measures to tighten liquidity.”

Increased demand for electronics helped Nanya Technology Corp., Taiwan's biggest maker of computer memory chips, and Powerchip Semiconductor Corp., post their first profits in 11 quarters. Taiwan Semiconductor Manufacturing Co., and United Microelectronics Corp., the world's largest makers of custom chips, will boost capital spending this year after posting fourth-quarter profit that exceeded analysts' estimates.

Yesterday's figures were released after the close of trading on the stock exchange. The TAIEX index was little changed at 7,215.88 at the close of trade in Taipei. The Taiwan dollar fell 0.03 percent to NT$32.195 versus the U.S. dollar as of 4 p.m. local time, according to Taipei Forex Inc.

Exports to China, Taiwan's biggest overseas market, rose 187.8 percent from a year earlier, after a 96.7 percent increase in December. Shipments to the U.S. advanced 13.7 percent after increasing 4 percent in December, the ministry said. Sales to Europe rose 41.1 percent, after an increase of 22.5 percent.

Taiwan's gross domestic product shrank 1.29 percent in the three months through September, the least in a year, after a 6.85 percent contraction in the second quarter. The fourth- quarter GDP report is due on Feb. 22.

Central bank Governor Perng Fai-nan cut borrowing costs by 2.375 percentage points from September 2008 to February 2009 to a record-low 1.25 percent to help cushion the economy from the global financial crisis. President Ma Ying-jeou's administration plans NT$858.5 of spending over four years, or about 6 percent of GDP, on infrastructure, consumer grants and tax cuts to help revive growth.

Taiwan is aiming for 22 percent growth in exports in 10 markets this year, including China, India, Japan, Russia and Brazil, the Ministry of Economic Affairs said last month. The island's statistics bureau forecast in November that exports would increase 15.4 percent this year.

Exports of electronic products including semiconductors rose 106 percent last month after increasing 72 percent in December, yesterday's report showed. Shipments of information technology and communication products, including mobile phones, rose 56.1 percent, compared with December's gain of 15.9 percent.

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