November 25, 2009
Taipei, Nov. 24, 2009 (CENS)--Taiwan`s economy has shown clear signs of recovery, as both export orders and domestic retail/wholesale sales grew in October.
October`s export orders rose 4.41% year-on-year to US$31.75 billion, the first positive growth since the outbreak of global financial tsunami one year ago, reported the Ministry of Economic Affairs (MOEA) yesterday (Nov. 23). The growth rate is expected to reach double digits in the coming months, due to the lower comparison base.
Meanwhile, wholesale/retail/dining sales advanced, for the second month in a row, 4.16% year-on-year to NT$1.12 trillion in October, with revenue of general merchandise retail business (including department stores, hypermarkets, and convenience stores) rising 4.9% to NT$25.2 billion, thanks to the vigorous marketing of anniversary sales by department stores.
The upturn of export orders in October is attributed mainly to robust demand from the Asian market, including a 19.6% growth in orders from China (including Hong Kong) and a 16.26% increase in orders from the six original members of ASEAN (Association of Southeast Asian Nations).
Orders from the U.S., however, stayed at the level of a year earlier and those from Europe even dropped 10%, in line with the shift of the focus of the global market from the Wet to the East.
The high-tech sector was the star performer in October, as orders for electronic components and parts leapt 30% year-on-year and those for information/communications technology products upped 5.63%, thanks to the strong demand for notebook PCs, desktop PCs, and mobile phones.
Spurred by the strong external demand, industrial output index jumped 6.56% year-on-year to 109.63 in October, the highest growth since May 2008.
Huang Chi-shih, statistics chief of the MOEA, predicted that export orders may slip again in November, due to the passage of the peak season and slackening effect of China`s "home appliances for rural areas" program, but orders will rebound strongly in December, thanks to the demand of the Chinese Lunar New Year.
(by Philip Liu)
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