Export orders down almost 16% in 2023, but 3rd highest in history

Taipei, Jan. 22 (CNA) The value of export orders received by Taiwanese companies in 2023 fell almost 16 percent from a year earlier because of weaker global demand, but still reached the third highest level in history, the Ministry of Economic Affairs (MOEA) said Monday.

Taiwan's export orders fell 15.9 percent from a year earlier to US$561.04 billion in 2023, trailing only US$674.13 billion in 2021 and US$666.79 billion in 2022, data compiled by the MOEA showed.

In December alone, Taiwan's export orders fell 16.0 percent from a year earlier to US$43.81 billion, falling back to negative growth after a 1.0 percent year-on-year increase in November.

The December figure came in below the MOEA's forecast, which expected the figure to range between US$48.0 billion and US$50.0 billion, down 4.2-8.0 percent from a year earlier.

MOEA Department of Statistics Director Huang Yu-ling (黃于玲) said the lower-than-expected export orders in December reflected continued weakness in global demand from end users, especially for electronics components and information and communications devices.

According to the MOEA, export orders received by the local electronics component sector fell 12.9 percent from a year earlier to US$14.92 billion in December, while export orders placed with the information and communications sector also dropped 25.3 percent year-on-year to US$12.27 billion.

For 2023 as a whole, export orders received by the electronics component and the information and communication sectors, the backbone of Taiwan's exports, fell 15.1 percent and 12.6 percent, respectively, from a year earlier to US$189.80 billion and US$166.02 billion.

In terms of old economy industries, export orders received by the base metal, machinery, plastics/rubber, and chemical sectors in December fell 1.7 percent, 10.5 percent, 15.2 percent and 6.5 percent, respectively, from a year earlier to US$2.15 billion, US$1.64 billion, US$1.50 billion and US$1.47 billion.

For 2023 as a whole, the base metal, machinery, plastics/rubber and chemical industries received US$25.10 billion, US$19.21 billion, US$18.75 billion and US$17.41 billion in export orders, down 20.9 percent, 20.0 percent, 25.9 percent and 25.5 percent from 2022.

Looking ahead, Huang said, Taiwan's exporters are expected to benefit from growing interest in emerging technologies, in particular in artificial intelligence applications, to mitigate the impact of global demand weakness.

Huang believed, however, that the global economy is expected to feel the pinch of high inflation, aggressive rate hikes by major central banks, and escalating geopolitical tensions.

She said a fall in demand from end-users was likely to affect Taiwan's export orders in January, when the total could range between US$38.0 billion and US$40 billion, down 15.8-20 percent from a year earlier.

She said the double-digit fall expected for January would also reflect a relatively high base of comparison from January 2023, when Taiwanese exporters received deferred orders after China lifted lockdowns related to the COVID-19 pandemic.