Taiwan exports to strengthen but imports will drop

Taiwan recorded a sharp decline in exports and imports in June. The trade balance data of the country due on 7th August is expected to show positive sign in exports.

Combining May and June data together, exports and imports have both indicated improvements. Societe Generale estimates, export growth to have recovered further to -6% yoy in July from -8.9% yoy in May and June, as demand for electronics seems to have recovered again. 

"However, imports are likely to have dropped 1.8% mom in July, after the consecutive gains seen in May and June. Softer commodity prices in July are also likely to have put downward pressure on import growth", argues SocGen.