Taiwan Economic Outlook
November 17, 2020
The economy rebounded strongly in the third quarter, contrasting the marginal contraction in the second quarter and marking the best result in two years. The turnaround was spearheaded by firmer exports growth, chiefly thanks to soaring demand for Taiwanese electronic goods from China and the U.S. On the domestic front, consumer demand showed signs of recovery in Q3, contracting at a much softer pace than in Q2. On top of that, government spending bounced back in the quarter, solidifying the overall economic recovery in turn. Turning to Q4, available data suggests sustained momentum at the tail end of the year. In October, the manufacturing PMI remained virtually unchanged at September’s 30-month high, which, coupled with an uptick in business confidence, points to solid private sector activity growth at the outset of the quarter. Moreover, sustained forward-looking export order growth in September signals upbeat external sector conditions in Q4.Taiwan Economic Growth
Growth should pick up steam next year, as the constraining effects of the pandemic gradually wear off. Upbeat foreign demand for merchandise goods will support the external sector, while recovering consumer demand is set to boost domestic activity. Uncertainty over the timing of a Covid-19 vaccine and geopolitical tensions with China cloud the outlook, however. Our panelists see GDP growing 3.4% in 2021, which is up 0.3 percentage points from last month’s estimate, and 2.6% in 2021.Taiwan Economy Data
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Taiwan Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 0.69 | 1.28 % | Dec 31 |
| Exchange Rate | 29.91 | 0.07 % | Jan 01 |
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Taiwan Economic News
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Taiwan: Merchandise exports grow at a milder pace in June
July 7, 2021
Merchandise exports shot up 35.1% annually in June, following May’s 38.5% jump.
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Taiwan: Inflation plunges to lowest level since March in June
July 7, 2021
Consumer prices increased 0.22% over the previous month in June, slowing down from the 0.26% increase recorded in May.
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Taiwan: Manufacturing PMI records worst reading since November 2020 in June
July 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 57.6 in June, down from May's 62.0.
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Taiwan: Industrial output growth improves in May
June 23, 2021
Industrial output rose 16.5% in year-on-year terms in May, which followed April's 14.1% increase.
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Taiwan: Central Bank holds policy stable in June
June 17, 2021
At its monetary policy meeting on 17 June, the Board of Directors of Taiwan’s Central Bank (CBC) kept rates unchanged, with the discount rate set at the record low of 1.125%. On one hand, strong domestic economic momentum so far this year, coupled with rising price pressures and recoveries abroad, meant that further stimulus was not warranted.
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