Taipei: Taiwan's exports fell for the fourth month in a row in December due to falling demand due to the worsening state of the global economy, inflation and rising interest rates, as well as the fact that the benefits of China's easing of its COVID controls had not yet been felt. .

The finance ministry reported on Saturday that exports fell 12.1% in value from a year earlier to $35.75 billion last month, the lowest level in 20 months.

It followed a 13.1% decline in November and was slightly better than the 13.3% contraction projected in a Reuters poll.

Also Read: 2023 Global economy strong despite challenges

According to the ministry, global demand eased gradually in December as a result of disruption in factory production in China due to a rise in COVID-19 cases following Beijing's disinformation, along with pressures on inflation and rising interest rates in major economies. Was. Its zero-covid governance.

The ministry forecast that the global economy would "slow significantly" with significant uncertainties from the conflict in Ukraine and the spread of COVID-19 in China. As a result, the ministry saw a continued decline in Taiwan's exports in the first quarter.

These negative effects will not be offset by the increased demand for silicon brought about by new technologies, the ministry said in a statement.

Taiwan's total exports of electronics parts fell 1.4% to $16.04 billion in December, while semiconductor exports rose 0.8% from the same month last year.

Also Read:  China's reopening and what it means for luxury

Companies such as TSMC (2330.TW), the biggest contract chip maker in the world, are key suppliers of chips to Apple Inc (AAPL.O) and other multinational tech giants, as well as to automakers and downscale consumer goods.

Taiwan's exports to China, the island's biggest trading partner, totaled $14.28 billion in December, down 16.4% from a year earlier after falling 20.9% in November.

The US-China tech war is among the risks, according to Taiwan's finance ministry, which predicted a 20% to 24% decline in exports in January from a year earlier.

According to the ministry's Tsai, the fourth quarter, which is usually a busy period before Christmas, saw exports decline 8.6% year-on-year. Exports to the US shrank 2.6% in December, compared to a contraction of 11.3% the previous month.

Also Read:  India's economy likely to grow 7 pc in FY23

Taiwan's December imports, often seen as a key indicator of finished product re-exports, fell 11.4% to $30.96 billion, beating economists' expectations after a 10.2% decline and an 8.6% decline in November .