Taiwan's exports shrank the most in more than two years in June as demand for its signature technology goods and from China fell sharply, threatening to erode the island's economic outlook. The bigger-than-expected slump was the fifth straight month of decline with shipments dropping to its key markets in the United States, Europe and China. Exports in June fell 13.9 percent from a year earlier, the worst fall since February 2013 when they slid 15.8 percent, and more than double the 6.0 percent decline projected by a Reuters poll. Annual exports to the United States and Europe posted nearly double-digit contractions last month, while shipments to China fell 17 percent from a year earlier, the Ministry of Finance said on Tuesday. Due to near record levels posted in the value of exports in July and August last year, positive on-year growth would not be possible this month nor next, said Yeh Maan-Tzwu, chief of the ministry's statistics department. However, she estimated that while July exports will fall, the decline will narrow from June's level. And as the peak season gets under way in the second half of the year, export growth could turn positive in September, Yeh told a news conference. In June, exports of parts and devices used in tech and mobile gadgets tumbled as outbound electronic goods fell 10.8 percent from a year earlier and those for information communication goods dropped by a bigger 31.4 percent. JihSun Securities economist Junwen Ku pointed to a poor performance at Taiwanese smartphone maker HTC Corp as dragging on smartphone exports. HTC on Monday said it posted a net loss of T$8.03 billion ($260 million) in the second quarter, which came as expected after the firm issued a loss warning in early June when it cut its second quarter revenue outlook by almost 30 percent. Ku said that Taiwan's central bank will likely delay any rate increase until early 2016 to ensure the trade-dependent economy can cope with any persistent weakness in exports. 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 worldwide. The grim data came after South Korea last week reported its exports declined for a sixth straight month in June. Taiwan's manufacturing activity in June, as measured by the Nikkei/Markit PMI, also saw new orders and new export orders fall at accelerated rates. (Reuters)