Taiwan: Economy improves but remains weak
November 23, 2012
In the third quarter, GDP rose 1.0% over the same period last year, according to complete data released by the statistical institute on 23 November. The reading confirmed the advance estimate published on 31 October and contrasted the 0.1% contraction observed in the second quarter (previously reported: -0.2% year-on-year). The improvement over the previous quarter was mainly driven by a recovery in fixed investment, which stepped up from a 7.7% contraction in Q2 to a 0.5% decline in Q3. Private consumption, on the other hand, deteriorated and expanded a weak 0.9% in the third quarter (Q2: +1.6% yoy). On the external side of the economy, both exports and imports improved at a similar pace. Exports of goods and services increased 1.8% (Q2: -2.5% yoy), while imports grew 1.2% (Q2: -4.1% yoy). As a result, the net contribution from the external sector to overall growth rose slightly from 0.5 percentage points in the second quarter to 0.7 percentage points in the third. Seasonally adjusted data corroborate the improvement suggested by the annual figures, as GDP expanded 1.0% over the previous period, which contrasted the 0.1% decline recorded in Q2.