Taiwan GDP Q1 2018


Taiwan: Economic momentum remains broadly steady in Q1

April 27, 2018

A preliminary estimate shows that economic growth continued at a broadly stable pace in the first quarter, supported by healthy domestic demand and a resilient external sector. GDP expanded 3.0% annually in Q1, easing slightly from Q4’s robust 3.3% expansion, but beating market expectations of 2.8% growth. On a seasonally-adjusted quarter-on-quarter basis, GDP growth slowed to 0.3% in Q1 from 1.0% in Q4.

Domestic demand gained traction in Q1. Private consumption expanded 3.0% over the previous year, accelerating at the fastest pace since the second quarter of 2015 (Q4: +2.9% year-on-year); it was buttressed by buoyant consumer confidence and higher income growth. Government spending also contributed to stronger domestic demand in Q1, rebounding to 6.3% growth from the 1.3% contraction recorded in Q4 on the back of public salary increases and higher public investment. Although gross capital formation continued to drag on growth due to lower machinery and equipment investment, the contraction was considerably softer than in Q4 (Q1: -1.7% yoy; Q4: -4.7% yoy).

Meanwhile, the external sector lost steam in Q1 as import growth picked up in conjunction with the recovery in domestic demand. Import growth expanded 5.6% over the previous year, accelerating from the 1.8% rise registered in Q4. Despite expectations of a downturn in the tech cycle and softer demand for smartphones such as the iPhone X, export growth was healthy, demonstrating the resilience of the external sector. Exports expanded 6.0% in Q1, matching Q4’s print. As export growth nevertheless outpaced import growth, the contribution from net exports to the economy was positive in Q1, adding 0.9 percentage points to overall GDP growth (Q4: plus 3.0 percentage points).

Q1’s performance set the economy on a stable growth trajectory for 2018, with domestic demand at the helm. Downside risks continue to loom large, however, as the trade-reliant economy faces a potential peak in the tech cycle and semiconductor manufacturers may be hit from weaker demand for smartphones. Moreover, the recovery in domestic demand could continue to spur imports and weigh on the net export contribution to growth. That said, improved domestic dynamics should help to offset any weakness in the tech industry, and growth in Q2 is expected to be relatively steady.

The government expects GDP to expand 2.4% in 2018. FocusEconomics Consensus Forecast panelists project GDP will grow 2.6% in 2018, which is unchanged from last month’s forecast. For 2019, the panel estimates that economic activity will increase 2.4%.

Author:, Economist

Sample Report

Looking for forecasts related to GDP in Taiwan? Download a sample report now.


Taiwan GDP Chart

Taiwan GDP Q1  2018 0

Note: Year-on-year changes of GDP in %.
Source: Directorate General of Budget, Accounting and Statistics (DGBAS) and FocusEconomics Consensus Forecasts.

Taiwan Economic News

  • Taiwan: Industrial production soars in December

    January 22, 2020

    Industrial output increased 6.0% in December compared to the same month a year earlier, quickening from the 1.8% increase recorded in November. The acceleration in December was chiefly driven by strong output growth in the manufacturing sector, which represents more than 90% of total industrial production, while a return to expansion in electricity and gas supply supported the overall figure.

    Read more

  • Taiwan: Economic activity accelerates in Q4

    January 21, 2020

    The economy grew 3.4% in the final quarter of 2019 compared to the same period a year earlier, according to an advance GDP estimate, up from the third quarter’s 3.0% increase.

    Read more

  • Taiwan: Inflation accelerates in December

    January 7, 2020

    Consumer prices increased 0.04% in December compared with the previous month, contrasting the 0.41% decrease in November.

    Read more

  • Taiwan: Exports and imports both climb in December, while trade surplus declines

    January 7, 2020

    Merchandise exports increased 4.0% in December in annual terms, following November’s 3.3% expansion.

    Read more

  • Taiwan: Manufacturing PMI ends the year on a positive note

    January 2, 2020

    The manufacturing Purchasing Managers’ Index (PMI), reported by IHS Markit, rose to 50.8 in December from 49.8 in November, thus moving above the 50-threshold and signaling the first improvement in operating conditions in over a year. The improvement came amid an uptick in the amount of new work received by manufacturers, ending a 15-month run of contraction.

    Read more

More news

Search form