Taiwan's export orders rose faster than economists had predicted in March as the global economic recovery boosted demand for computers and mobile phones.

Orders, which are an indication of shipments in the next one to three months, increased 43.66 percent over a year earlier. The jump followed a year-to-year gain of 36.25 percent in February, the "Ministry of Economic Affairs" (MOEA) said in Taipei yesterday. The median estimate of 10 economists in a Bloomberg News survey was for a 40.05 percent advance.

"Vice Premier" Eric Chu said last month that the economy may expand by more than 4.8 percent this year and that the government is aiming to cut the jobless rate to less than 5 percent. Rising orders may spur companies to hire, with Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract maker of chips, last week raising its estimate of global semiconductor sales.

"Demand has picked up, having returned to levels of 2008," said Renee Yang, an economist at Yuanta Securities Co. in Taipei. "Companies are relatively optimistic, at least for April and May," she added.

Taiwan's economy expanded 9.2 percent in the three months through December after five consecutive quarters of contraction. Its unemployment rate fell for a sixth consecutive month in February to 5.65 percent.

Taiwan leader Ma Ying-jeou is negotiating a trade accord with the mainland that would cut import duties on Taiwanese goods in the world's fastest-growing major economy and help cement the recovery.

The mainland's economy expanded 11.9 percent in first quarter from a year earlier, the biggest gain since the second quarter of 2007, the statistics bureau in Beijing said last week.

The value of export orders climbed to $34.39 billion last month from $27.41 billion in February, Tuesday's report showed.

Export orders from the mainland and Hong Kong combined increased 59.7 percent last month, after a 49.4 percent gain in February. Orders from the US climbed 18.2 percent from a year earlier, after a 13.5 percent advance in February.

Orders for electronics rose 39.1 percent last month, after a 40.9 percent increase in February, Tuesday's report showed. Demand for information technology and communications products climbed 40.3 percent in March, after gaining 43.8 percent a month earlier.

China Daily/Bloomberg News

(HK Edition 04/21/2010 page4)