Taiwan's 2023 exports hit 3rd highest annual level after December growth

Taipei, Jan. 9 (CNA) Taiwan's exports for 2023 hit the third highest annual level in history after outbound sales in December rose 11.8 percent from a year earlier, on the back of solid demand for artificial intelligence related gadgets, the Ministry of Finance (MOF) said Tuesday.

Data compiled by the MOF showed the country's exports last year totaled US$432.48 billion, the third highest after US$479.4 billion in 2022 and US$446.4 billion in 2021, with the 2023 figure down 9.8 percent from a year earlier.

Business created by AI applications helped Taiwan's exporters offset the impact of global demand weakness as a whole, at a time of high inflation and aggressive rate hikes by major central banks worldwide, the MOF said.

Imports for 2023 fell 17.8 percent from a year earlier to US$351.92 billion, with a trade surplus of US$80.56 billion, up 56.9 percent from a year earlier, the data indicated.

In 2023, the electronic components industry, the backbone of Taiwan's exports, generated US$178.71 billion in exports, down 10.7 percent from a year earlier with outbound sales posted by semiconductor suppliers falling 9.5 percent from a year earlier at US$166.62 billion.

In addition, as AI development boosted demand, exports posted by the information communications and audio/video industry bucked the downturn, rising 28.9 percent from a year earlier to US$83.36 billion, an annual record.

In December alone, Taiwan's exports rose 11.8 percent from a year earlier to US$39.94 billion, the highest monthly level in 16 months, marking the second consecutive monthly year-on-year increase, the MOF said, citing strong demand for AI applications.

Taiwan's imports fell 6.5 percent from a year earlier to US$28.84 billion in December, marking the 14th consecutive monthly year-on-year decline, while the trade surplus totaled US$11.10 billion, up 127.0 percent from a year earlier.

Due to the stronger December performance, exports for the fourth quarter rose 3.4 percent from a year earlier to US$115.50 billion.

At a news conference, Beatrice Tsai (蔡美娜), director-general of the MOF's Department of Statistics, said exports for December beat the ministry's forecast as AI applications, servers and cloud computing continued to boost demand.

Tsai added the increase also reflected a relatively low comparison base over the same period of last year.

However, due to inventory adjustments in the semiconductor industry, Tsai said, exports generated by the electronic components industry fell 1.2 percent from a year earlier to US$15.86 billion in December, but the decline was still the smallest in 14 months.

Boosted by strong demand for AI applications, exports from the local information communications and audio/video industry soared 94.7 percent hitting US$10.11 billion, marking the first time sales topped the US$10 billion mark, Tsai said.

In the old economy sector, the MOF said, exports continued to feel the pinch from falling demand but the decline moderated in December, while outbound sales by base metal, machinery and plastics/rubber makers fell 1.1 percent, 2.8 percent and 3.2 percent, respectively, to US$2.40 billion, US$2.17 billion and US$1.63 billion in the month, with the falls in the three industries the smallest in one year.

Exports of mineral goods in December rose 7.2 percent from a year earlier to US$950 million on a spike in diesel oil sale volume, according to the MOF.

China and Hong Kong continued to serve as the largest buyer of Taiwan-made goods in December after purchasing US$13.36 billion, down 6.4 percent from a year earlier and accounting for 33.4 percent of the total, compared with 33.9 percent in November.

The United States came in second after buying US$8.49 billion worth of goods from Taiwan, a record high, up 49.7 percent from a year earlier, while ASEAN countries were the third largest buyer with purchases of US$6.97 billion, up 21.7 percent from a year earlier, the MOF said.

As for 2023 as a whole, China and Hong Kong remained the largest buyer of Taiwan's goods after purchasing US$152.25 billion worth, down 18.1 percent from a year earlier.

Exports to China and Hong Kong accounted for 35.2 percent of Taiwan's total outbound sales in 2023, down from 38.8 percent in 2022, according to the MOF.

As demand revives, Taiwan's exports are expected to range between US$37.8 billion and US$39.0 billion in January, up 20-24 percent from a year earlier, with outbound sales from the electronic components industry expected to return to an uptrend, Tsai said.

The anticipated strong growth in January will also result from a relatively low comparison base over the same period of last year, when the number of working days was cut by the long Chinese New Year holiday, she added.

Citing an estimate from the Directorate General of Budget, Accounting and Statistics, Tsai said Taiwan's exports are expected to grow 8.6 percent in the first quarter of this year.