TAIPEI (Taiwan News) — Taiwan’s exports are likely to show their steepest decline in 14 years this year amid the war in Ukraine, inflation, interest rate hikes, and technology disputes between the United States and China, the Ministry of Finance (MOF) said Monday (May 8).

The figure for April showed a year-on-year drop of 13.3% to US$35.96 billion (NT$1.10 trillion). The figure was the eighth monthly decline in a row, with officials forecasting May would see the same trend persist, CNA reported.

Of the 11 main categories, only information technology and audiovisual products saw a positive export performance in April 2023 compared to the same month last year, according to MOF data. The export of computer parts even surged by 39.7% for the biggest rise in 14 months due to a rebound in demand for PCs.

However, the MOF cautioned against considering a one-month performance, saying it wanted to look at trends over at least two or three months. If the positive development lasted three months, then one could begin to speak of a stable recovery, the ministry said.

Prominent tech firms in Taiwan have turned conservative about predicting business for the next few months amid weak demand from overseas, according to officials. An overall export decline of 14.7% for the year was possible, with signs of a recovery only likely during the final quarter of 2023, the MOF said.