Taiwan: Economy accelerates in Q4
February 18, 2014
In the last quarter of 2013, GDP rose 3.0% over the same period of the previous year according to official data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) on 18 February. The reading came in well above the revised 1.3% expansion recorded in the third quarter and was a tad above market expectations of a 2.9% increase. As a result, the economy expanded 2.1% in the full year 2013, which was up from the 1.5% expansion tallied in 2012. The performance in the fourth quarter resulted from an improvement in domestic demand, which more than offset the deterioration seen in the external side of the economy. Private consumption accelerated to a 3.3% rise in the fourth quarter (Q3: +1.5% year-on-year), which marked the strongest expansion since Q3 2011. Moreover, public spending expanded 0.4% (Q3: -1.2% yoy). Gross investment soared 8.9%, which marked a significant improvement over the 0.6% decline tallied in Q3. On the external side of the economy, exports of goods and services increased 4.0% (Q3: +1.7% yoy), while imports expanded a stronger 6.1% (Q3: +0.6% yoy). Consequently, the external sector's net contribution to overall growth deteriorated from 0.9 percentage points in Q3 to a 0.2 percentage points detraction in Q4. On a quarterly basis, GDP rose 1.8% over the previous period in seasonally-adjusted terms, which marked a strong expansion over the 0.1% increase observed in the third quarter. The government sees GDP expanding 2.8% in 2014. FocusEconomics Consensus Forecast panelists project GDP to grow 3.3% this year, which is unchanged from last month's forecast. For 2015, the panel estimates that economic activity will increase 3.8%.