Taiwan Export Growth Slows, Imports Surge

Taiwan's exports grew for a seventh straight month in April on strong overseas demand for tech-related components, but at a slower pace than in previous months, while imports surged.

Exports expanded 9.4% from a year earlier to US$24.32 billion, largely supported by gains in semiconductor shipments, the Ministry of Finance said Monday. Economists polled by The Wall Street Journal had expected an expansion of 10.0%. The gain in exports was also smaller than March's 13.2% increase. Ahead of the release, some analysts had said a weaker PMI reading in April suggested a slight softening in export strength.

Most of the island's main export groups expanded when compared with a year earlier.

Overseas shipments of electronics components, Taiwan's largest export group with just over a third of the total, rose 10.7%, with the subcategory of semiconductors gaining 13.9%. Shipments of information, communication and audio-video products increased 12.7%. Smartphone-related demand has fueled growth in these categories in recent months, though the gains in April were smaller than in previous months.

Exports to mainland China and Hong Kong, accounting for about 40% of the total, continued to show robust growth, rising 10.3%. Exports to Southeast Asian countries increased by 14.1%. Shipments to the U.S. rose 7.6%, while those to Europe grew 1.4%. Exports to Japan gained 9.3%.

Imports leapt by 23.5% to $21.53 billion, besting a forecast for an 18.2% increase and a 19.8% jump in March.

The surge in imports squeezed Taiwan's trade surplus for the month to $2.78 billion, compared with the survey's $3.6 billion forecast and a $3.93 billion surplus in March.