TAIPEI: Taiwan's exports grew at their best pace in three years last year as new smartphones and gadgets sent the value of the island's tech shipments to a record high for 2014.
While the full-year figure was robust, export strength was largely related to new product launches such as Apple Inc's iPhone 6, and demand was expected to soften once the consumer buying frenzy eases.
Growing uncertainties in the global economy hit Taiwan's exports in the final month of last year, with December exports surprisingly falling 2.8 percent, data from the Ministry of Finance showed on Friday. A Reuters poll had forecast a rise of 1.5 percent.
Yeh Maan-Tzwu, chief of the statistics department at the ministry, however, said that although the peak season for technology shipments had passed, that sector of exports should still continue to see growth going forward in coming months.
Asia's export-reliant economies are vulnerable to expectations of persistent weakness in China, Europe and Japan this year, weaknesses which may not be totally offset by a stronger U.S. economy.
"(Taiwan's) short-term export outlook has weakened to some degree," DBS economists said in a research note before the data.
Exports for all of last year rose 2.7 percent to $313.84 billion, the best annual gain since 2010, as exports of electronic products rose a greater 13 percent to hit $99.99 billion, an annual record.
The island's trade surplus for 2014 totalled $39.61 billion, expanding from the $35.54 billion recorded for 2013.
In December, Taiwan's exports to the United States rose 14.6 percent, outpacing November's 11.4 percent gain. But exports to other trading partners China, Japan and Europe all fell.
Total imports in the month fell by a bigger 12.3 percent, against a Reuters poll forecasting a 2.6 percent drop.
"Falling oil prices had a major impact in December and could continue in coming months," said Kevin Wang, an analyst at Taishin Securities Investment Advisory in Taipei.
Lower oil prices may be delaying demand for oil-related exports as customers wait to see if prices will fall further, analysts said.
China remains the top export market for Taiwan as many Taiwanese factories on the mainland produce electronic gadgets destined for the United States and Europe.
Taiwan's factory activity stalled in December at the lowest level since August 2013. HSBC economist John Zhu warned the fall may not be a one-off given weak economic data in many of Taiwan's export markets.
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