Taiwan: Economy returns to growth in Q3
October 31, 2012
In the third quarter, GDP rose 1.0% over the same period last year, according to the 31 October advance estimate. The reading contrasted the 0.2% contraction recorded in the second quarter but undershot market expectations of a 1.5% increase. The improvement over the previous quarter was driven by a recovery in investment as well as by a larger contribution from the external sector. Private consumption expanded a meagre 0.4% (Q2: +0.8% year-on-year). On the other hand, gross investment - which includes changes in inventories - bounced back from a 7.7% contraction in the second quarter to a 1.2% expansion. As a result, domestic demand expanded 0.3% in Q3, contrasting the 1.0% contraction recorded in the previous period. On the external side of the economy, exports of goods and services grew 1.5% (Q2: -2.0% yoy) while imports expanded 0.6% (Q2: -3.7% yoy). As a result, the net contribution from the external sector to overall growth improved from 0.6 percentage points in Q2 to 0.8 percentage points in Q3. On a quarterly basis, GDP expanded 0.86% over the previous period in seasonally adjusted terms, which was above the 0.55% rise observed in the second quarter. More detailed data will be published on 23 November.