Taiwan is set to release its exports order data for the month of May next week. According to consensus, the export order is expected to have risen 7.6 percent year-on-year. If global growth continues to indicate signs of improvement, then Taiwan’s export orders should follow suit, which is an important ingredient to a sound Taiwanese economy that greatly relies on trade, noted Wells Fargo in a research report.
Global GDP growth is expected to strengthened slightly in 2017. Export volumes of Taiwan have been trending upward, and rose 8.5 percent in April on a year-on-year basis. Taiwan has widespread ties with mainland China. Final spending on the mainland accounts for 10 percent of value added in Taiwan.
Although GDP growth in China is expected to decelerate slightly this year as compared to the 6.7 percent pace recorded in 2016, an implosion of China’s economy does not look very likely, at least not in the near future, stated Wells Fargo.
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Source: Forex News