Taiwan: Economy slows in Q4
January 30, 2015
In the fourth quarter of 2014, GDP increased 3.2% over the same period of the previous year, according to official data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) on 30 January. The reading undershot market expectations of a 3.3% expansion and marked the slowest growth rate since Q3 2013. In addition, the result was below the 3.6% increase tallied in Q3 2014. The economy expanded 3.5% in 2014, which is above 2013’s 2.2% increase and marks the largest expansion since 2011.
Q4’s moderation came on the back of a slowdown in domestic demand. Private consumption slowed from a 2.9% year-on-year expansion in Q3 to a 2.3% rise in Q4. Government consumption decelerated from a 3.8% annual rise in Q3 to a 2.3% expansion in Q4. In addition, gross investment noticeably weakened, expanding 2.2% in the fourth quarter (Q3: +8.0% year-on-year).
On the external front, exports of goods and services increased 5.6% annually in Q4, which was a slowdown from the 7.5% expansion tallied in Q3. Imports also slowed notably to a 4.6% expansion (Q3: +9.1% yoy). As a result, the external sector’s net contribution to overall economic growth increased from minus 0.3 percentage points registered in Q3 to plus 1.1 percentage points in Q4.
On a sequential basis, GDP rose 1.2% over the previous period in seasonally-adjusted terms, which came in above the 0.7% increase observed in the third quarter.