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Taiwan's exports fell for the first time in three years as fewer working days due to the Lunar New Year holiday distorted the February data, the Finance Ministry said on Monday. Exports fell 10.8 percent in the year through February, data showed, well below market forecasts of a 1.4 percent rise. Exports had risen 29.7 percent in the year through January. The ministry said the timing of the week-long new year break, which fell in January last year, was behind the first fall since March 2002.
It projected that exports would rise 5.9 percent in the year through March, and total first quarter exports would be 7.4 percent higher than 2004's level. "Exports and imports shrunk mainly because the Lunar New Year fell in February this year and there were fewer days and therefore less data to compile," Hsu Kuo-chung, the ministry's chief statistician, said at a news conference.
"As such, trade with Hong Kong and China, the United States, Japan, Europe and Southeast Asia declined."
Imports fell 17.3 percent in the year through February, well below market expectations of a 0.6 percent dip. That gave Taiwan a monthly trade surplus of US$899.2 million in February, up sharply from $39.9 million a year earlier.
Separately, the statistics agency said the consumer orice index rose 1.9 percent in the year through February, higher than market expectations of a 1.6 percent rise, due to increased payments and spending during the new year holiday.

Copyright Reuters, 2005

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