Bullish second half of 2016 couldn’t save annual growth

By Kuan-lin Liu, The China Post

TAIPEI, Taiwan — Days before the Ministry of Economic Affairs (MOEA) is due to make its 2016 export order announcement on Jan. 20, officials are already predicting an overall decrease in the number and value of export orders for 2016.

Due to the decrease in export orders throughout the first half of 2016, it was reported that 2016 experienced an overall decline of 1.1 percent to 1.3 percent in export orders compared to 2015.

The first half of 2016 saw a 7.3 percent decrease in export orders, which had the effect of reducing the overall earnings for the year to somewhere between NT$445.9 billion to NT$446.9 billion.

The net worth of export orders for 2015 was NT$451.81 billion, which — though higher than the expected value for 2016 — was a 4.4 percent decrease from 2014.

The Jan. 20 announcement is expected to reveal the export orders for the month of December, which the MOEA recently said saw around a 9.8 to 12.4 percent increase from December 2015.

According to the MOEA, December’s export orders were worth around NT$42.6 billion to NT$43.6 billion.

While this would mark the fifth month in a row that export orders have experienced a year-on-year growth, the MOEA noted that export orders for December did see a decrease from the month of November.

According to the MOEA’s estimates, the composition of December’s export orders, in comparison to the month before, was as follows: 20.5 percent experienced an increase from November, while 53.1 percent remained the same. Around 26 percent witnessed a decrease.

Therefore, the total monetary value of export orders for the month of December fell short of the NT$43.62 billion from the month of November.

The main reason behind the slight decrease from November to December was that information technology and telecommunications products entered the end of their sales period by December, MOEA reported.