Taiwan's exports rose for a fourth month in February on increased sales of electronics goods to the mainland ahead of the lunar new year holiday, strengthening the island's recovery from its deepest recession on record.

Outbound shipments climbed 32.6 percent from a year earlier, the "Ministry of Finance" said yesterday in Taipei. The median estimate of 13 economists surveyed by Bloomberg News was for a 32.9 percent gain. Imports advanced 45.8 percent for a trade surplus of $899.7 million.

The recovery of overseas sales, which equal more than half of Taiwan's gross domestic product, helped the economy expand 9.22 percent in the three months through December and end five quarters of contraction. Companies are increasing production and hiring workers to meet mainland demand for electronics goods, and Taiwan leader Ma Ying-jeou is negotiating a trade accord with the mainland that may help cement the recovery.

Lunar new year demand from the mainland helped offset the slowdown in Europe and the US, said Tony Phoo, an economist at Standard Chartered Bank in Taipei, adding that improving ties with the mainland will continue to help Taiwan's exports.

Taiwan joins regional rivals South Korea and Japan in posting higher exports this year as Asia leads a global recovery. South Korea's overseas shipments climbed 31 percent in February and Japan's surged 40.9 percent in January, the biggest increase in almost 30 years.

Exports to the mainland, Taiwan's biggest overseas market, rose 45 percent from a year earlier, after a 187.8 percent increase in January. Shipments to the US advanced 23.3 percent after increasing 13.7 percent in January. Sales to Europe climbed 32.2 percent, after a 41.1 percent gain.

Ma said February 9 that the proposed accord with the mainland will attract foreign direct investment, create jobs and allow the island to stay competitive.

Exports of electronic products including semiconductors climbed 57.2 percent last month after increasing 106 percent in January, yesterday's report showed.

China Daily/Bloomberg News

(HK Edition 03/09/2010 page4)