Record fall in Taiwan exports

Taiwan boasts the world's 15th largest economy

By BBC World Service business reporter, Mark Gregory

Taiwan has suffered the biggest fall in its exports since detailed records began in the mid-1970's.

In July, the value of Taiwanese exports was - at $10bn - 28% lower than in the same month last year.

Exports of electronic goods - Taiwan's largest manufacturing sector - were worst affected, registering a fall of over 40%.

The figures can be seen as another sign of how the global economic slowdown has badly affected some of Asia's most dynamic economies.

Trading partners in difficulties

Taiwan's two key trading partners are the United States and Japan.

Both of these economies are experiencing significant difficulties, which has reduced their appetite for Taiwanese goods.

A few days ago, South Korea, another key Asian manufacturing centre, also reported a slump in trade.

Surprisingly, in Taiwan's case, imports have declined at an even faster pace than exports.

That was partly due to a slump in imports of machinery and other industrial equipment - an indicator of further economic weakness to come.

However, Taiwanese officials expect the trade position to show signs of recovery by the end of this year or early next year.

Leading economy

Taiwan emerged from poverty to become a leading industrial power in the course of a single generation.

It is the world's 15th largest economy - an astonishing achievement for a relatively small island, with few natural resources.

But now like other former "Asian tiger" economies, Taiwan has been badly hit by the global economic slowdown.

Four years ago, Taiwan escaped almost unscathed from the great Asian financial crisis, largely because of the strength of its trade links to the then booming US economy.

Now it's a very different story.