Taiwan's exports grew faster than expectations in May, buoyed by demand for the island's hi-tech gadgets and machinery, with strong growth in exports to the U.S. and exports to Japan rebounding in a sign that its major quake in March may have had less impact on the global supply chain than feared.

The strong data is unlikely to change the view that the central bank will raise interest rates at each of its remaining policy meetings this year.

The finance ministry said the rise in exports, which reached a record high in the month in value terms, was backed by strong demand for electronics, electrical products and machinery. Imports from Japan also picked up from the previous month's slow growth rate.

Key Points

  • Exports +24.6 pct y/y (forecast median +18 pct, range +9.5 to +24 pct; prior month +16.7 pct)
  • Imports +25.7 pct y/y (forecast median +23.7 pct, prior month +16.7 pct)
  • Trade surplus $2.96 billion (forecast median surplus $1.755 bln, prior month surplus $1.77 bln)
  • Exports to China +15 pct (prior month +9.6 pct)
  • Exports to the U.S. +39.7 pct (prior month +21.3 pct)
  • Exports to Europe +24.8 pct (prior month +25.1 pct)
  • Exports to Japan +15.5 pct (prior month -2.5 pct)
  • Imports from Japan +2.4 pct ([prior month +1.0 pct)

The ministry said exports of IT and communications devices rose 71.3 percent in the month, while machinery exports rose 42.6 percent. Exports of chemicals grew 38.2 percent. (Reuters)