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Taiwan Feb export growth slows on plunge in China demand
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Taiwan Feb export growth slows on plunge in China demand
Mar 8, 2024 1:50 AM

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Export +1.3% y/y vs +1.1% forecast in Reuters poll

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Exports to China -16.7% y/y (prior month +17.2%)

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Gov't sees exports in March up 9% to 13% y/y

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Gov't sees Q1 exports growth 9.5% - 10.9 y/y

(Recasts, adds details throughout)

By Jeanny Kao and Faith Hung

TAIPEI, March 8 (Reuters) - Taiwan's February exports

slowed after growing at its fastest pace in almost two years,

reflective of a seasonal ebb in demand and a pause in

productivity for the Lunar New Year holidays.

Exports rose 1.3% from a year earlier to a value of $31.43

billion, the finance ministry said on Friday, compared with 1.1%

growth forecast in a Reuters poll and a precipitous drop from an

18.1% gain in January.

"Overall exports slowed as there were fewer working days due

to the new year holidays," the ministry said. "Even so, February

exports jumped by $390 million on year as demand for new

applications such as AI and high-performance computing has

continued to grow."

While the island's exports typically wane with the Lunar

New Year, the seasonal slowdown hinders a recovery that had only

just begun in late 2023 after a decline that persisted for more

than a year.

The week-long Lunar New Year holiday this year took place in

February.

Looking ahead, the ministry forecasts exports would rise

between 9% and 13% in March on year, adding that first-quarter

exports would grow between 9.5% and 10.9% on year.

Weak global demand weighed on Taiwan last year with the

export-driven economy growing at its slowest pace in 14 years.

Taiwanese firms such as TSMC , the world's

largest contract chipmaker, are major suppliers to Apple ( AAPL )

, Nvidia ( NVDA ) and other global tech giants, while

also providing chips for auto companies and lower-end consumer

goods.

In February, Taiwan's total shipments of electronic

components fell 10.4% from a year earlier to $11.59 billion,

with semiconductor exports down 9.9%.

Exports to the United States jumped 50.5%, versus 56.6%

growth in January.

Exports to China in February slumped 16.7% from a year

earlier to $9.166 billion, as demand shrank after the prior

month's gain of 17.2%.

Taiwan's imports, often seen as a leading indicator of

re-exports of finished products, shed 17.8% to $23.55 billion in

February. That compared with economists' forecasts for a 2.5%

dip.

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