World News

Taiwan December export growth seen slowing, inflation at seven-month high: Reuters poll

TAIPEI (Reuters) – Taiwan’s exports likely grew at a slower pace in December, after beating expectations with a 3.3% on-year increase in the prior month, according to a Reuters poll.

Taiwan is one of Asia’s major exporters, especially of technology goods, and its export trend is a key gauge of global demand for gadgets worldwide.

Exports are expected to have increased 1.7% from a year earlier, compared with a growth of 3.3% in November.

The trade-reliant island’s inflation rate in December is estimated to stand at 0.88%, the highest in seven months, according to the median forecast of 12 analysts surveyed by Reuters.

Taiwan’s economic outlook has improved on better global demand for electronics and as some manufacturers move factories from China back to Taiwan to avoid higher U.S. tariffs on Chinese-made goods.

However, Taiwan’s November export orders dropped for the 13th straight month and at a faster pace, with the government blaming weak market demand and “disruption” from the China-U.S. trade war despite signs of a pick-up in global demand for electronics.

(Reporting by Carol Lee; Writing by Ben Blanchard, Editing by Sherry Jacob-Phillips)