Cityscape at night in Taiwan

Taiwan Private consumption

Taiwan Private consumption

Private Consumption in Taiwan

Taiwan's economy recorded average private consumption growth of 1.9% in the decade to 2022. In 2022, private consumption growth was 3.5%. For more private consumption information, visit our dedicated page.

Taiwan Private consumption Chart

Note: This chart displays Private Consumption (annual variation in %) for Taiwan from 2016 to 2014.
Source: DGBAS Taiwan.

Taiwan Private consumption Data

2018 2019 2020 2021 2022
Private Consumption (ann. var. %) 2.1 2.3 -2.6 -0.2 3.7

GDP growth records best reading since Q2 2021 in the first quarter

GDP growth accelerated to 6.5% year on year in the first quarter from 4.9% in the fourth quarter of last year. Q1's reading marked an over-two-year high and was above market forecasts, with the economy benefiting from higher IT exports and tourism, as well as a much softer downturn in investment. On a seasonally-adjusted quarter-on-quarter basis, economic growth lost momentum, cooling to 0.3% in Q1 compared to the previous quarter's 2.3% expansion.

Private consumption growth fell to 4.1% in Q1 (Q4 2023: +5.1% yoy). Public consumption rose 1.3% in Q1 (Q4 2023: 0.0% yoy), and total investment fell 4.5% (Q4 2023: 9.1% yoy). Exports of goods and services growth accelerated to 10.2% year on year in the first quarter, which marked the best reading since Q3 2021 (Q4 2023: +3.7% yoy). In addition, imports of goods and services bounced back, growing 2.2% in Q1 (Q4 2023: -4.5% yoy).

Our Consensus is for year-on-year GDP growth to slow in Q2 due to a higher base of comparison, though underlying momentum should continue to benefit from rising tourism and demand for the country’s high-tech goods exports.

On the outlook, ING’s Lynn Song said: “A less favourable base effect will likely cause the YoY growth to moderate significantly in subsequent quarters – though we expect that full-year growth will still come in significantly stronger than last year's 1.3% YoY.” United Overseas Bank’s Ho Woei Chen said: “The stronger than expected 1Q24 GDP suggests upside risk to our 3.5% forecast for Taiwan’s GDP growth this year (CBC’s est. 3.22%). That is particularly so if the growth turns more broad-based as capital investment recovers along with sustained export strength and inventory rebuilding and a resilient private consumption.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Taiwanese private consumption projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable private consumption forecast available for Taiwanese private consumption.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Taiwanese private consumption projections.

Want to get access to the full dataset of Taiwanese private consumption forecasts? Send an email to info@focus-economics.com.

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