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Subject: Summary of Trends in Internati...
Content: According to the forecast released by IHS Markit (IHS) on September 20, 2021, the global economy wil...

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Summary of Trends in International Trade for September 2021

Source:Bureau of Foreign Trade, Ministry of Economic Affairs
Revise Date:2021-10-07

According to the forecast released by IHS Markit (IHS) on September 20, 2021, the global economy will grow by 5.6% in 2021. Due to the spread of the Delta variant virus, production capacity is limited in some regions, and consumption is becoming cautious in some areas, the recovery is divergent among regions, global economic growth momentum may slow down.


In August 2021, Taiwan’s economy continued to show a red signal and the Coincident Indicators continued to fall. However, the Purchasing Managers Index expanded, while manufacturing and export orders continued to increase due to the steady recovery of the global economy and the terminal demand, which support the momentum of technology applications and traditional industrial products. Also, the Leading Indicators has turned to increase, and the outlook for manufacturing and purchasing managers over the next six months signals expansion, which means that the epidemic impact to domestic economy has been slowed down. However, the risk of the spread of the variant virus epidemic, and trade and technological disputes may continue, which deserve close observation on follow-up developments.


Taiwan’s export orders in August 2021 amounted to US$53.50 billion, for an increase of US$8.02 billion or 17.6% over the same period in 2020. This was mainly because of the global economic recovery, strong final demand for products with technological applications and traditional industrial products, as well as the high price levels in international raw material markets, which drove the overall increase in orders for major products.


In August 2021, total trade value reached US$75.63 billion, for an increase of 35.4% over the same period last year. Of this, exports totaled US$39.55 billion, for a year-on-year increase of 26.9%, while imports totaled US$36.08 billion, for a year-on-year increase of 46.1%. Given the drive for emerging technology applications and digital transformation business opportunities, along with the rising prices of international raw materials, Taiwan's exports and import both reached their highest scale in a single month compared to past year.


Observations on the trade performance of Taiwan and its major trading partners:


Taiwan's exports in August 2021 to its major trading partners (mainland China, the ASEAN 10, the US, the EU, and Japan) grew across the board. The increase in exports to the EU was the highest, at 43.8%, followed by exports to Japan, at 39.4%. Exports to the ASEAN 10, the US and mainland China rose by 32.2%, 28.9% and 13.0%, respectively.


Taiwan's imports from its major trading partners (mainland China, Japan, the EU, the ASEAN 10, and the US) in August 2021 were driven by the increasing demand for capital equipment and price of international raw materials. The highest increases in imports came from the Japan at 47.9%, followed by imports from the ASEAN 10, the U.S., mainland China and the EU, which increased by 42.4%, 37.8%, 33.5% and 32.6%, respectively.


Of the top 10 exports in August 2021, electrical machinery equipment and parts (HS85) grew by US$3.49 billion year-on-year for the most outstanding performance. In addition, the growth rate of fossil fuels (HS27) and organic chemical products (HS29) increased significantly, which is mainly due to the rising demand for internationally-traditional industrial products and the price of raw material market.


Published Date:2021-10-07