Taiwan'S Export Growth Rate In November Was The Worst &Nbsp In Two Years.

Taiwan

In November, imports grew by 10.4% over the same period last year, up 2.1% from market expectations.

In November, the balance of trade reached a surplus of US $3 billion 200 million, a surplus of US $3 billion 320 million last month.

Taiwan's exports to China (including Hongkong) in November changed from last year to

* * Market Review * *

-- Moodie analysis of KATRINA ELL:, general manager of Sydney

What is most worrying is that exports slowed sharply to only 1.3% over the same period last year, while the growth rate in October was still 11.7%.

The external driven economy of Taiwan has clearly felt the impact of weak global demand.

Leading indicator export orders have hinted that exports are unlikely to recover in the short term.

-- Xu Guoan, an analyst with Qun Yi Jinding securities.

Since the purchasing managers index (PMI) of the major global economies was lower than 50, Taiwan is one of the supply chains and an island economy.

The obvious decline in imports was due to the huge economic growth in 2009, the over optimism of manufacturers and the overcapacity of imported equipment, resulting in overcapacity.

Although exports are not performing well, there will be no single quarter negative economic growth next year, because the greater the import recession, the greater the net export contribution from exports.

It is expected that imports will not pick up until the fourth quarter of next year. Next year, the GDP material will reach 4%, so there is little room to cut interest rates. It is possible to see when the trade partners will cut interest rates in South Korea and may have an opportunity in the first quarter of next year.

* * market reaction * *

This data was released before the close of Taiwan foreign exchange market, and Taiwan dollar closed 1.1 points against the US dollar at 30.179.

The Taiwan stock weighted stock index fell 0.71% to 6982.90 points.

* * market reaction * *

This data was released before the close of Taiwan foreign exchange market, and Taiwan dollar closed 1.1 points against the US dollar at 30.179.

The Taiwan stock weighted stock index fell 0.71% to 6982.90 points.

* * related background * *

- the economic growth rate of the accounting office was revised from 4.56% to 4.51% in late November.

This year, the estimated annual export growth will reach 13.26%, and the annual import rate will reach 13.41%.

- the head office predicted that the economic growth rate in 2012 was 4.19% and the annual growth rate of exports was 5.27%.

Many Taiwan enterprises export electronic parts to China and assemble them to export to other markets such as the United States. China (including Hongkong) is currently the largest export market for Taiwan; the six ASEAN countries and the United States are also important export areas for Taiwan.