Taiwan's exports slumped far more than expected in November, denting hopes the trade-reliant economy can grow in the last quarter of this year after sinking into recession in July-September. The 16.9 percent on-year contraction in exports in November was worse than a Reuters poll projection of a 10.2 percent fall. The export drop was the biggest annual fall for any month since August 2009.
The November fall - the 10th straight one - is likely to boost the case for the island's central bank to cut interest rates again on December 17, when it meets within hours of a Federal Reserve session that is expected to raise US rates. Taiwan is one of Asia's major exporters, especially of technology goods, and its export trend is a key gauge of global demand for technology gadgets.
The fresh export data "doesn't bode well for GDP in the fourth quarter," said Raymond Yeung, senior economist with ANZ in Hong Kong, adding that he doesn't see any improvement in December shipments or short-term growth prospects. At the end of November, the government forecast fourth quarter annual economic growth of just 0.49 percent. In the third quarter, the economy contracted 1.2 percent from April-June at a seasonally-adjusted annualised rate (SAAR), and by an annual 0.63 percent. For the first 11 months, exports were 10.3 percent below the same period of 2014, when shipments were lifted by the latest iPhone's launch.
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