Taiwan GDP Q2 2022


Taiwan: Economy records slowest increase since Q2 2020 in the second quarter

August 12, 2022

GDP growth dipped to 3.0% year on year in the second quarter from 3.7% in Q1, marking the slowest increase since Q2 2020 and slightly undershooting market expectations. On a seasonally-adjusted quarter-on-quarter basis, economic activity declined 1.8% in Q2, contrasting the previous period's 1.6% increase. The weaker year-on-year and quarter-on-quarter readings were linked to the surge in domestic Covid-19 cases and lockdowns in China, which affected domestic and external demand respectively.

In annual terms, household spending growth hit an over two-year high of 2.9% in the second quarter, up from the first quarter's 0.6% but supported by a low base of comparison. Government spending bounced back, growing 6.4% in Q2 (Q1: -0.4% yoy). Meanwhile, fixed investment growth improved to 10.7% in Q2, from the 7.7% expansion recorded in the prior quarter, likely aided by strong investment in the semiconductor sector.

On the external front, exports of goods and services growth fell to 4.3% in Q2, marking the worst reading since Q3 2020 (Q1: +9.1% yoy). Conversely, imports of goods and services growth sped up to 8.8% in Q2 (Q1: +8.7% yoy).

On the outlook, the EIU said:

“We believe that the ongoing global chip shortage will continue to underpin gross capital formation (both fixed investment and inventory creation) in the coming quarters […]. New stimulus programmes supporting private consumption in the domestic tourism and retail sectors will also foster a sequential pick-up in household spending from July-September. However, a stronger headline recovery will be limited by relatively high domestic inflation readings, tighter credit conditions and weakness in the broader outlook for exports and industrial production.”

FocusEconomics panelists see GDP growing 3.4% in 2022, which is down 0.1 percentage points from last month’s forecast, and 2.8% in 2023.

Author:, Economist

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Taiwan GDP Chart

Taiwan GDP Q2  2022

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

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