[photopress:it_made_in_Taiwan.jpg,full,alignright]According to the median estimate of 11 economists surveyed by Bloomberg News Taiwan’s export growth probably accelerated in May as demand from other, mainly China, tempered weakening sales to the U.S.and Europe.
Peter Kurz, head of Taiwan research at Citigroup, said on Bloomberg Television, ‘There will be some influence from the U.S. for sure. But the growing exports to emerging markets in China, Russia, India and elsewhere will help mitigate the impact of a slowdown in the U.S.’
China’s economy expanded 10.6% in the first quarter, compared with 11.9% for the whole of last year, an easing its central bank described as ‘moderate.’
Sales of electronics to the world’s fastest growing major economy have helped Taiwan weather fallout from the U.S. financial crisis, which has cut demand for Asian exports.
Tony Phoo, an economist at Standard Chartered Bank in Taipei said, ‘We continue to expect robust sales to mainland China to keep overall growth supported. Electronics shipments and sales to Europe and the U.S. are expected to ‘stay soft.’
The mainland and the U.S. are Taiwan’s two biggest overseas markets. Overseas shipments are equivalent to about 50% of Taiwan’s gross domestic product.
Source: Bloomberg