Disappointing Taiwan exports slid 4.6% in August

Contraction was more severe than what the market expected, says BBVA.

Still, the silver lining is that even though Taiwan's exports contracted by -4.2% y/y against a consensus of 2.7%, it is an improvement from the -11.6% y/y decline registered the previous month.

"Exports in Taiwan have declined for six consecutive months, although they appear more stable on a sequential basis. By destination, the biggest decline was to Europe, while exports to China and the US continued to fall although at a slower pace. Given the recent weakening of PMI and export orders, we expect Taiwan’s highly open economy to continue to face external headwinds," said BBVA.

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