TAIPEI (TVBS News) — The Taiwan Machine Tool & Accessory Builders' Association (TMBA) announced Thursday (May 9) that geopolitical risks, trade frictions, and inflationary interest rate hikes have declined machine tool exports in April.
According to the TMBA, the export value of machine tools in April was $172 million, a decrease of 11.5% from the previous month and a 26.1% drop compared to last year.
The total export value of machine tools for the first four months of this year was $702 million, a decrease of 14.6% compared to the same period in 2023.
The association analyzed that the manufacturing industry's performance in April was affected by geopolitical risks, trade frictions, and inflationary interest rate hikes. The market demand in various countries was not as strong as expected, and companies' capital expenditure attitudes remained cautious.
The TMBA further cited Turkey as an example. The country has been facing geopolitical conflicts recently and has been hit by inflation. To curb inflation, the government has adopted strong interest rate hikes, leading to a dramatic increase in financing pressure and a downturn in investor confidence, affecting the economy's recovery.