Aug. 20 (Bloomberg) -- Taiwan’s export orders fell more than economists forecast in July, the fifth straight decline, as a faltering global recovery hurt demand for its goods.
Orders, an indicator of shipments in the next one to three months, dropped 4.4 percent from a year earlier after a 2.62 percent decline in June, a Ministry of Economic Affairs report in Taipei showed today. The median estimate in a Bloomberg News survey of 12 economists was for a 2.98 percent fall.
The island cut its growth forecast for the year to 1.66 percent from an earlier estimate of 2.08 percent last week, after the economy shrank more than initially estimated last quarter. It said exports would contract 1.72 percent this year, after China, its biggest market, expanded at the slowest pace in three years in the second quarter.
“The outlook for Taiwan’s orders and sales will be increasingly difficult and challenging,” Raymond Yeung, a Hong Kong-based economist at Australia & New Zealand Banking Group Ltd., said before the report. “The risk of another quarterly contraction is rising,” and the slowdown in China will continue to be a major drag for Taiwan, he said.
The value of Taiwan’s export orders was $35.94 billion last month, today’s report showed.
Orders from China fell 5.5 percent in July from a year earlier, while demand from Europe slid 4.7 percent, according to the report. The value of orders for precision instruments sank 12.4 percent, while information and telecommunications equipment slipped 5 percent, it showed.
Separately, a central bank report showed Taiwan’s current-account surplus narrowed to $10 billion in the second quarter, compared with a revised $10.96 billion surplus in the January-March period.
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