Taiwan’s June exports may be down 3%, inflation -0.87%: Reuters poll
Taiwan’s exports for June has been forecasted to have dropped by 3% in contrast to a year earlier, according to a median forecast of 13 analysts polled by Reuters. The results are based on the uncertainties of the COVID-19 pandemic as it continues to disrupt global demand for the island nation’s electronics exports.
Taiwan is one of Asia’s major exporters of technology goods, and its export trend is a key gauge of global demand for technology gadgets worldwide. Its largest trading partner is China.
Forecasts have widely ranged from a decline of 7.1% to a growth of 2.5% as uncertainties over the pandemic on the island’s tech manufacturers, including the world’s largest contract chip manufacturer, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) .
Exports for May fell by 2.0% year-to-year to $27 billion, falling for a third straight month, but at a slower pace.
Taiwan’s central bank last month further reduced the growth outlook for 2020 to 1.52% in contrast to a forecast of 1.92% in March.
Meanwhile, the poll said that the inflation rate in June was seen at -0.87% year-on-year, compared with May’s -1.19%.