Ex­ports fell in Septem­ber: fi­nance min­is­ter

The China Post - - FRONT PAGE -

Fi­nance Min­is­ter Chang Sheng­ford said Satur­day that Tai­wan is ex­pected to re­port a year-on-year fall in ex­ports for Septem­ber as the pro­longed Mid-Au­tumn Fes­ti­val hol­i­day and an in­ter­rup­tion by Typhoon Du­juan wors­ened the coun­try's ex­port per­for­mance.

Chang said that fol­low­ing slug­gish pace in Au­gust, Tai­wan's ex­ports con­tin­ued to be af­fected by weak­en­ing global de­mand, while the fall in the first half of Septem­ber was nar­rowed to a sin­gle digit pace com­pared with Au­gust's 14.8-per­cent year-on-year de­cline.

Ex­ports in the sec­ond half seemed to be im­pacted by a re­duced num­ber of work­ing days re­sult­ing the long hol­i­day of Sept. 26-28 and the Sept. 29 of­fice clo­sures for the typhoon, Chang said, adding that he is sure the Min­istry of Fi­nance (MOF) will re­port a year-on-year fall in ex­ports for Septem­ber.

The MOF is sched­uled to re­lease the Septem­ber ex­port data Oct. 7. If the min­istry re­ports a fall in ex­ports next week as ex­pected, Septem­ber will be the eighth con­sec­u­tive month for Tai­wan to suf­fer a year-on-year de­cline in ex­ports.

In Au­gust, Tai­wan felt the pinch of the im­pact from a slow­down in the world's econ­omy, as well as a plunge in in­ter­na­tional crude oil prices, to re­port the dis­ap­point­ing trade data. The coun­try's ex­ports for Au­gust to­taled US$23.93 bil­lion, down 14.8 per­cent from a year ear­lier but up 1.6 per­cent from a month ear­lier.

In the first eight months of this year, Tai­wan's ex­ports fell 8.8 per­cent from a year ear­lier to US$189.89 bil­lion.

"There is no sign that Tai­wan's ex­ports will climb out of the cur­rent dol­drums any time soon as global de­mand re­mains weak," Chang told re­porters. He said it is likely for Tai­wan to re­port a year-on-year fall in ex­ports for 2015.

Chang said that since ex­ports ac­count for about 60 per­cent of Tai­wan's gross do­mes­tic prod­uct (GDP), the weak­ness of the global mar­ket has dealt a se­ri­ous blow to the coun­try's eco­nomic growth.

In mid-Au­gust, the Di­rec­torate Gen­eral of Bud­get, Ac­count­ing and Sta­tis­tics (DGBAS) cut its forecast for Tai­wan's 2015 GDP growth to 1.56 per­cent from an ear­lier es­ti­mate of 3.28 per­cent. With the ex­port per­for­mance de­te­ri­o­rat­ing, Shih Su-mei, di­rec­tor-gen­eral of the DGBAS said Oct. 1 that it will be hard for Tai­wan to main­tain its GDP growth at a pace of 1 per­cent this year.

A fall in ex­ports has boosted the num­ber of work­ers tak­ing un­paid leave, as most of the af­fected em­ploy­ers were ex­porters. As of the end of Septem­ber, the num­ber of work­ers on un­paid leave rose 84 per­cent from a month ear­lier to 1,233.

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