Developing Asia sustains exports with strong AI-driven semiconductor demand
Taipei, China saw strong export growth from high AI demand, though increased imports and weak consumption offset net export gains.
Exports across developing Asia remained supported in Q3 2024 by strong global demand for semiconductors, particularly AI-related products, according to Asian Development Bank (ADB).
In its report, ADB said the Republic of Korea's semiconductor exports provided critical support to its economy, but growth slowed as demand from major markets weakened.
Similarly, Taipei, China saw robust export growth, driven by high demand for AI-related goods, which contributed to double-digit investment growth, although a surge in manufacturing and investment-related imports, coupled with weakened private consumption, offset some gains from net exports.
ADB noted weakened demand in key export markets like the U.S. and Asia particularly affected high-income technology exporters such as Korea and Hong Kong, China.
Despite this, the broader region showed varied performance. For instance, ASEAN economies outperformed expectations with stronger-than-anticipated GDP growth, fueled by resilient domestic demand rather than export reliance.
Meanwhile, the PRC and India faced slowdowns driven by domestic challenges. The PRC struggled with weak domestic demand and a prolonged property sector downturn, prompting authorities to introduce liquidity-boosting measures such as rate cuts and reduced mortgage requirements.
