Global tech, US demand fuel Taiwan’s July exports

TAIPEI: Taiwan’s exports in July expanded for a 10th straight month, as factories rushed to meet orders for Apple Inc’s upcoming iPhone 8 and US shipments surged.

The stronger-than-expected performance bodes well for Taiwan’s economy, setting it up to meet the government’s 2.05% target and giving the central bank leeway to leave interest rates unchanged at its quarterly meeting next month.

Exports in July rose 12.5% from a year earlier, expanding for the 10th consecutive month, the finance ministry said. That beat the 8.9% forecast in a Reuters poll and was roughly flat against 13% growth in June.

July imports also rose a faster 6.5% compared with June’s 3.7%, resulting in a trade surplus of US$5.37bil.

“The global economy is recovering at a stable pace, orders are coming in from international cell phone brands, while demand for non-electronics products is also picking up, and there was a lower base effect,” the ministry said in a statement, referring to the comparative base of July 2016.

July’s export value was US$27.11bil, the highest since December 2014, the ministry said, adding exports are expected to grow year-on-year in the third and fourth quarters this year.

Apple recently delivered surprisingly strong fiscal third-quarter earnings and signaled that its upcoming 10th-anniversary phone lineup was on schedule, boosting expectations of increasing shipments from its Taiwanese suppliers.