Exports Increase, NTD Trends Down
Despite the impact of Taiwan’s recent COVID-19 outbreak, the latest GDP forecast from the Taiwan Institute of Economic Research (TIER) predicts an annual economic growth rate of 5.40% in 2021. This growth can mainly be attributed to Taiwan’s exports in goods, which have remained “strong and robust.”
Exports in June increased 35.14% in value from the same month last year. This growth was largely the result of strong market demand for ICT components and other merchandise and the low base due to the impact last year of the COVID-19 pandemic. Meanwhile, June imports increased by 42.35% year-on-year.
The New Taiwan dollar weakened against a more robust U.S. dollar, with the NTD-to-USD ratio standing at 27.87 in June, a 0.77% depreciation from the previous month. The interest rate remained low in June due to the continuation of relaxed monetary operations by Taiwan’s Central Bank.