In the second quarter, GDP rose 5.0% over the same period last year, according to an 18 August estimate, which was above the advance estimate of 4.9% published on 29 July. The reading was below the 6.2% expansion recorded in the fourth quarter (previously reported: +6.5% year-on-year) but exceeded market expectations that the economy would expand 4.5%. The second quarter deceleration reflected slower growth in the external as well as the domestic sector. Private consumption slowed from a 4.4% annual increase in the first quarter to a 3.1% expansion, while gross fixed investment decelerated more markedly to a subdued 1.6% (Q1 2011: +8.6% yoy). However, the contribution from inventories swung from minus 1.5 percentage points in the previous period to plus 0.2 percentage points. Therefore, domestic demand decelerated to a 2.6% increase, down from the 2.9% expansion registered in the first quarter. The net contribution from the external sector to overall growth deteriorated from a 3.7 percentage point contribution in the first quarter to a 2.8 percentage point contribution in the second. Exports of goods and services grew 4.4% (Q1 2011: +11.2% yoy), while imports expanded 0.9% (Q1 2011: +7.4% yoy). A quarter-on-quarter comparison corroborates the deceleration suggested by the annual figures, as the economy expanded 0.2% over the previous quarter in seasonally-adjusted terms, only a fraction of the 3.5% expansion in the previous period. Owing to slightly weaker domestic demand, the government revised its GDP forecast for this year marginally downwards, from 5.0% to 4.8%. For 2012, the government expects the economy to expand 4.6%.
GDP slows in the second quarter but remains strong
August 18, 2011
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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.