However, it said global economic fundamentals continue to improve, and that Taiwan's semiconductor industry stands to gain from demand for 5G and other high-tech products.
The ministry added that assuming coronavirus cases do not start affecting production domestically, which has not happened in a significant way so far, exports in the second quarter could exceed $100 billion. May exports to China, Taiwan's largest trading partner, jumped an annual 29.5% to $15.69 billion, while exports to the United States grew 27.3% on year. Imports leapt 40.9%, against economists' expectations for a 25.7% rise and an increase of 26.4% in April. Taiwan could see June exports increase in the range of 27% to 31% from a year earlier, the ministry added.
The government has remained bullish about Taiwan's prospects even with the pandemic at home. Taiwan's economy will grow at its fastest pace in more than a decade in 2021, the statistics office predicted last week.
(Reporting by Jeanny Kao and Liang-sa Loh; Writing by Ben Blanchard; Editing by Jacqueline Wong)