Commerzbank economists highlight that Taiwan’s February exports grew 20.6% year-on-year, marking a thirteenth straight month of double-digit gains despite holiday distortions. Electronics and AI-related shipments remain robust, though officials warn Middle East conflict could weigh on trade.

Trade stays firm

"February exports rose less than expected by 20.6% yoy (Bloomberg consensus: 35.5%) vs 69.9% in January. However, this still marked the thirteenth consecutive months of double-digit growth."

"Demand for leading-edge semiconductors remained robust amid the electronics upcycle, and AI-related exports should rebound in the coming months as Lunar New Year effects fade."

"By destination, exports to the US expanded 33.7% yoy vs 151.8% in January. Shipments to the US now account for 32% of total exports, the highest share in 36 years."

"The Department of Statistics Director-General Beatrice Tsai warned that a prolonged conflict in the Middle East could weigh on Taiwan’s export outlook. She said that disrupted shipping routes and higher fuel prices could squeeze corporate profits and dampen consumer sentiment."

"Net foreign inflows into the Taiwanese equities were positive for the first time in two weeks yesterday, at USD1.2bn."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)