Taiwan: Economic growth edges up in Q3
November 6, 2014
In the third quarter, GDP increased 3.8% over the same period last year, according to official data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) on 31 October, and marked the fastest expansion since Q4 2012. The reading was slightly above the 3.7% increase tallied in Q2, however, it just undershot the 3.9% expansion the markets had expected.
Q3’s improvement came on the back of strong growth in domestic demand. Private consumption increased 2.4% annually in Q3 (Q2: +2.5 year-on-year) and government consumption rose 3.2% (Q2: +1.1% yoy). In addition, gross investment improved in the third quarter from Q2’s 6.8% rise to a 7.9% annual increase.
On the external front, exports of goods and services increased 7.3% annually in Q3, which was a significant improvement from the 4.4% expansion tallied in Q2. Imports also accelerated to an 8.4% expansion (Q2: +3.8% yoy). As a result, the external sector’s net contribution to overall economic growth was 0.9 percentage points in Q3, which was below the 1.2 percentage-point contribution registered in Q2.
On a sequential basis, GDP rose 0.5% over the previous period in seasonally-adjusted terms, which came in below the 1.0% increase observed in the second quarter.