June export orders indicate improving global economy: ANZ
July 23, 2014, 12:15 am TWN
TAIPEI--Taiwan's export orders in June grew over 10 percent year-on-year, reflecting improving external demand as the global economic recovery continues to gain steam, according to Australia and New Zealand Banking Group Ltd. (ANZ)
"Taiwan's export orders can be a decent gauge for external demand, not only for Taiwan itself, but also for the region as a whole," ANZ said in a research note Monday. "The better-than-expected figure in June suggests that the external demand continues to improve."
Taiwan's export orders in June increased 10.6 percent from a year earlier, higher than analyst expectations of 6.1 percent growth and surpassing the 4.7-percent order growth seen in May, official statistics showed.
The strong growth was mainly fueled by orders for electronics goods, which surged 17 percent year-on-year as demand for mobile devices remained strong, the bank said.
Orders for information and communications technology products increased 8.8 percent from a year earlier, partly due to hardware replacement driven by Windows upgrades, the bank said.
"Geographically, the growth was broad-based," ANZ said, noting that orders from China and Hong Kong rose 14.5 percent year-on-year, in line with the recent improvement in China's economy.
Orders from Europe and the Association of Southeast Asian Nations also posted double-digit growth at 15.2 percent and 13.6 percent, respectively, while orders from the United States and Japan grew more slowly, by 6.7 percent and 4.2 percent, respectively.
"Taiwan's trade has improved steadily on improving demand from advanced economies and China," ANZ said. "We remain generally positive about Taiwan's external outlook."
Yet despite its optimism, the bank warned that Taiwan's political environment is facing uncertainties, especially with nationwide local elections coming in late November.
"We need to be vigilant to the impact of rising political risk on cross-strait economic relations, which could affect Taiwan's competitive advantage," ANZ said.
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