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IPFS News Link • Taiwan

"Winter Is Coming": Taiwan Export Slowdown Implies Darkening Clouds For Global Economy

•, by Tyler Durden

A statement from the Finance Ministry in Taipei said exports grew a paltry 2% in August compared with the same month last year -- the slowest pace of growth since July 2020, when exports only grew by .3%. Bloomberg noted economists were expecting an increase of 11.6%. 

Imports also decelerated, rising by 3.5% in August, compared to a 19.4% expansion in July. Economists were anticipating an 8.7% rise. 

Beatrice Tsai, the Ministry of Finance's chief statistician, said the trade slowdown suggests "winter is coming." She outlined how double-digit export growth in the third quarter is unlikely, adding September exports could contract by 3% versus a year ago. 

Taiwan's dominance in semiconductor fabrication is a good barometer of global chip demand. 

"While demand for integrated circuits and mineral products continued to be hot, export sales of traditional products such as plastics and base metals were sluggish due to weak end-user demand," according to a statement from the finance ministry.

The slowdown in exports is a troubling sign that the global tech sector could be entering an alarming downturn due to lackluster consumer demand worldwide: 

"There are clearer signs showing that the tech sector has entered a downturn, driven by weakening global demand for mobile phones, PCs and other consumer electronics products, which also weighs on demand for the upstream semiconductors," said Ma Tieying, an economist at DBS Group Holdings Ltd.

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