Taiwan: Economy slows slightly in Q1
April 30, 2015
In the first quarter of 2015, GDP increased 3.4% over the same period of the previous year, according to official data released by the Directorate General of Budget, Accounting and Statistics (DGBAS) on 22 May. The reading was below the preliminary result of a 3.5% increase.
Q1’s slowdown came on the back of a deterioration in domestic demand, while the external sector improved compared to last quarter. Private consumption ticked up from a 2.4% year-on-year expansion in Q4 2014 to a 2.5% rise in Q1 2015. Government consumption contracted 2.2% in Q1, which notably contrasted Q4’s 4.3% rise and marked the largest contraction since Q2 2006. However, gross capital formation picked up slightly, rebounding from zero growth in Q4 to 0.4% growth in Q1.
On the external front, exports of goods and services increased 5.9% annually in Q1, which was down from Q4’s 6.5% expansion. In contrast, imports slowed notably to a 2.5% expansion (Q4: +6.1% yoy). As a result, the external sector’s net contribution to overall economic growth increased from plus 0.9 percentage points registered in Q4 to plus 2.6 percentage points in Q1.
On a sequential basis, GDP rose 0.7% over the previous period in seasonally-adjusted terms, which came in above the 0.5% increase observed in the fourth quarter of last year.