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: Industrial output growth picks up pace in November
December 23, 2020
Industrial output rose 7.8% in November (October: +6.4% yoy).
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Taiwan: Central Bank holds policy stable in December
December 17, 2020
At its monetary policy meeting on 17 December, the Board of Directors of Taiwan’s Central Bank kept the discount rate unchanged at the record low of 1.125%.
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Taiwan: Merchandise exports increase at a quicker pace in November
December 8, 2020
Merchandise exports soared 12.0% over the same month last year in November (October: +11.2% year-on-year).
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Taiwan: Inflation hits highest level since January in November
December 8, 2020
Consumer prices dropped 0.06% from the previous month in November, swinging from the 0.34% increase logged in October.
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Taiwan: Manufacturing PMI points to another solid expansion in activity in November
December 1, 2020
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, jumped to 56.9 in November from 55.1 in October, marking the joint-strongest reading since April 2011.
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