Taiwan’s export orders declined less than forecast last month as the post-Covid reopening of Chinese factories sparked a rebound in demand for smartphones.
(Bloomberg) — Taiwan’s export orders declined less than forecast last month as the post-Covid reopening of Chinese factories sparked a rebound in demand for smartphones.
Overseas orders to Taiwanese companies fell 19.3% from a year earlier in January, according to a statement from the Ministry of Economic Affairs on Monday. Economists had forecast a drop of 24%, according to a Bloomberg survey.
The decline was also less than December’s 23.2% plunge.
Orders of information and communication goods — the largest single category of products and which accounts for over 35% of overseas demand — rebounded 9.8% in January, the first growth since September.
The main reason for the rebound was the improved health of supply chains after China lifted Covid restrictions, which led to increased orders for smartphones, the ministry said in a statement.
The data could provide tentative grounds for optimism in the new year after Taiwan’s economy unexpectedly shrank 0.86% in the fourth quarter of 2022. That was the largest quarterly contraction since the global financial crisis as waning global demand brought to an end a pandemic-fueled trade boom.
–With assistance from Argin Chang.
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