As Taiwan's overall exports dropped for the sixth consecutive month in August, the Executive Yuan said today that the nation will continue to bolster exports to emerging markets to offset declines to the U.S., Europe and mainland China.
Executive Yuan officials stated that the government has noticed an economic slowdown in Taiwan's major trade destinations. As such, in early 2012, the Ministry of Economic Affairs (MOEA) launched a series of diversification measures aimed at expanding trade with Southeast Asia, the Middle East, North Africa, etc.
Positive growth has already been seen. While overall exports dropped in the first seven months of the year, they grew nearly 3 percent in the emerging markets. This is a step in the right direction and the government will continue following this path, said the Executive Yuan.
In the first eight months of 2012, Taiwan's outbound shipments to most major destinations fell year-on-year, down 11.9 percent to the U.S., 9.3 percent to Europe, 8.7 percent to mainland China and Hong Kong, and 2.9 percent to Japan. However, its exports to six member states of the Association of Southeast Asian Nations (ASEAN) rose 6.6 percent, boosted by 21.8-percent and 20.6-percent increases to the Philippines and Singapore, respectively. In August alone, Taiwan's exports to six ASEAN partners jumped 24.2 percent from the previous year, led by shipments to the Philippines and Singapore, which soared 110 percent and 40.1 percent respectively.
The Executive Yuan said the emerging markets now take up the largest share of export orders. According to the Bureau of Foreign Trade, emerging markets accounted for 65.6 percent of Taiwan's exports in 2011. This increase has been mainly fueled by the rising middle class in mainland China, ASEAN states, India and Brazil, whose spending power is expected to drive Taiwan's trade growth this year.
The U.S. accounted for only 11.8 percent of Taiwan's export in 2011, the 27 member states of the European Union, 9.3 percent; and Japan, 5.9 percent.
Taiwan is also targeting emerging markets in Central and South America, Eastern Europe, Africa and South Asia.