Overseas shipments rose 21.3 percent from a year earlier after increasing 20.5 percent in May, the Ministry of Finance said in Taipei yesterday. That was more than the median estimate of 16.5 percent in a Bloomberg News survey of 11 economists.

Growth in exports to Europe more than doubled from the previous month, yesterday’s report showed. China’s appetite for Taiwan’s goods also increased, helping the island to weather a decline in shipments to the U.S., where economic growth is slowing.

“Stronger exports will help to boost consumption and economic growth, because Taiwan’s an export-led economy,” said Hsu Kuo-an, an economist at Capital Securities Corp. in Taipei.

A stronger economy will give the central bank more room to raise interest rates to tackle inflation, which quickened in June to 4.97 percent, the fastest pace in eight months, according to another report released yesterday.

Taiwan’s first-quarter growth was a faster than-expected 6.06 percent, bolstered by overseas shipments, which account for about half of gross domestic product.

Exports climbed in June to a record US$24.3 billion, the ministry said. Shipments to China, the island’s biggest market, and Hong Kong rose 25.5 percent, accelerating from a 23.5 percent increase in May.

Shipments to the U.S., the second-biggest market, fell 2.6 percent last month, after sliding 3.6 percent in May.

Taiwan’s ties with China, the world’s fastest-growing major economy, are improving, raising the possibility of more trade gains.

Direct flights of Chinese tourists to the island started last week, ending a six-decade ban that deprived Taiwan of visitors from its closest neighbor. Emerging markets will keep playing a bigger role in Taiwan’s exports, the finance ministry said in a statement yesterday.

Exports to Europe climbed 24.2 percent after gaining 10.7 percent. Exports to India jumped 114.7 percent, more than twice May’s 45.9 percent. Sales to Japan rose 19.8 percent, slowing from 23.7 percent.

Imports rose 22.5 percent in June, accelerating from May’s 17.6 percent increase, as oil prices increased. Economists had forecast a 17.5 percent gain. The trade surplus widened to US$1.49 billion from $1.42 billion a year earlier.

Overseas shipments of information technology and communications products climbed 28 percent, three times the pace of the previous month. Exports of electronics rose 6.2 percent, easing from 12.8 percent.