The Asian export outlook continues to weaken, according to the latest export forecasts from Taiwan and Thailand.
Taiwan export orders, which provide a good indicator of shipment volumes for the following three months, fell in July for the fifth consecutive month as demand from Europe and the U.S. remained bearish and China’s growth slowed.
July export orders from Taiwan, home to a number of major shippers including Asus and Acer, declined 4.4 percent year-over-year. This followed the 2.6 percent contraction recorded in June compared to a year earlier.
With exports expected to decline around 1.7 percent this year, Taiwan has cut its estimated GDP growth in 2012 from just over 2 percent to 1.7 percent.
Thailand has also reduced its full-year export growth forecasts because of weak international demand. After predicting a 15 percent increase this year as the economy bounced back from the floods that afflicted exports in the second half of 2011, export growth of 7.3 percent is now expected.
As a result of the weak external outlook, Thailand’s National Economic and Social Development Board has downgraded GDP growth expectations for 2012 from 5.5 to 6.5 percent to 5.5 to 6 percent.
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