Taipei, Feb. 9, 2010 (CENS)--Taiwan`s exports hit a 16-month high of US$21.75 billion in January, approaching the level before the outbreak of the global financial tsunami and soaring 75.8% year-on-year, the highest growth of its kind in 33 years, reported the Ministry of Finance (MOF) yesterday (Feb. 8).

Imports in January also surged to US$19.25 billion, up 114.7% year-on-year, the highest growth in 35 years, thanks to vigorous upturn in domestic demand and export-related demand.

Lin Li-chen, chief of statistics, MOF, expected that the strong upturn in foreign trade will continue well into the first half this year, adding that Taiwan will resume export boom comparable to the pre-financial tsunami level in February or March.

Exports to China staged the most exceptional performance, skyrocketing 187.8%, while shipments to Hong Kong also jumped 113%, with combined exports to the two markets amounting to US$9.54 billion, approaching the previous peak of US$10 billion.

Electronic products, the island`s mainstream export item, spearheaded the export upturn, as its export leapt 106% year-on-year in the month, when optical devices and chemicals also turned in a stellar performance, racking up 233.1% and 123.2% of export growth, respectively.

One major reason for the strong export upturn is the low comparison base, as January last year had fewer working days, due to the Chinese Lunar New Year, aggravating the effect of the global financial tsunami. By contrast, many exporters rushed to ship their products in January this year, before the advent of the lengthy Chinese Lunar New Year holiday in February.

Another reason was the strong demand from the Asian region, whose economy has staged a strong recovery.

In the month, China and Hong Kong absorbed 43.9% of Taiwan`s exports, the second highest share ever. Taiwan`s exports to ASEAN (the Association of Southeast Asian Nations) jumped 87.1% year-on-year, making it an overseas outlet for Taiwanese products even larger than the U.S. and Europe.

Imports of capital goods surpassed US$2.5 billion, for the fourth month in a row, while imports of consumer goods hit US$1.7 billion, the highest for the month in 11 years.

(by Philip Liu)