In the third quarter, GDP rose 3.4% over the same period last year, the slowest pace of expansion seen since the final quarter of 2009, according to preliminary estimates. The reading was unchanged from the advance estimate, but came in below the revised 4.5% expansion in the second quarter (previously reported: +5.0% year-on-year). According to the press release, the deceleration came on the back of weaker domestic demand. Gross fixed investment plunged 10.7% annually (Q2: +1.4% yoy), whereas private consumption expanded 3.1%, virtually unchanged from the 3.0% expansion witnessed in the second quarter. As a result, the domestic sector's contribution to overall economic growth swung from plus 1.8 percentage points in the second quarter to minus 0.4 percentage points in the third. In contrast, the external sector's contribution improved from 2.7 percentage points in Q2 to 3.9 percentage points in the third quarter, as imports of goods and services contracted 3.9% (Q2: +1.8% yoy), while exports expanded 2.1% (Q2: +4.9% yoy). A quarter on quarter comparison points to an even deeper slowdown, as GDP contracted 0.1% over the previous quarter, contrasting the 0.6% expansion in the second quarter. Owing to slightly weaker domestic demand, the government revised its GDP forecast for this year marginally downwards, from 4.6% to 4.5%. For 2012, the government expects the economy to expand 4.2%.
Economy slows in third quarter
November 24, 2011
Looking for forecasts related to GDP in Taiwan? Download a sample report now.
Taiwan Economic News
October 9, 2016
In September, the trade surplus totaled USD 4.4 billion, according to data from the Ministry of Finance.
October 5, 2016
In September, consumer prices increased 0.45% over the previous month, which was a rebound from the 0.03% fall recorded in August.
October 3, 2016
Taiwanese manufacturers registered better business conditions for the fourth consecutive month in September.
September 29, 2016
At its quarterly monetary policy meeting on 29 September, the Central Bank of the Republic of China (Taiwan) decided to leave the discount rate unchanged at 1.375%, which was a decision that markets had expected, although some analysts had foreseen a further reduction to the key policy rate. The Central Bank has cut the main monetary policy rate four times since September 2015 by a total of 50 basis points and this time the authority decided to leave interest rates unchanged “against a back drop of moderate global growth and renewed momentum for the domestic economy, along with a mild inflation outlook for next year.” Regarding global developments and how they affect the Taiwanese economy, the Central Bank stated that the global economy continues to decelerate as a result of slower economic growth in the U.S., a still tepid recovery in the Eurozone economy and sluggish economic activity in Japan.
September 27, 2016
Taiwan’s industrial output increased substantially in August, backed by a base effect but also due to strong growth in semiconductor manufacturers’ output, which benefited from the debut of Apple’s latest iPhone model.