GDP in Taiwan
Taiwan - GDP (billions of U.S. Dollars)
GDP growth loses steam in Q2 amid domestic Covid-19 outbreak
GDP growth lost steam, falling to 7.5% year-on-year in the second quarter, from 8.9% in the first quarter. While the external sector and investment remained buoyant amid a red-hot electronics sector, the domestic economy lost notable momentum, amid the imposition of restrictions to curb the outbreak of Covid-19 cases.
Household spending shrank 0.4% year-on-year in Q2, compared to a 2.1% expansion in Q1. Government consumption grew 2.4% (Q1: +4.3% yoy), while gross capital formation was up 8.6% (Q1: +9.1% yoy), supported by strong investment in machinery, transport equipment and construction.
Exports of goods and services increased 22.9% on an annual basis in the second quarter, which was above the first quarter's 21.3% expansion. In addition, imports of goods and services growth expanded 17.7% in Q2 (Q1: +15.5% yoy).
On a seasonally-adjusted quarter-on-quarter basis, GDP dropped 2.0% in Q2, contrasting the previous period's 3.0% increase. Q2's reading marked the sharpest decrease since Q3 2008.
Looking ahead, annual growth will likely slow notably in Q3 on a less favorable base effect. However, underlying momentum should improve, given that domestic Covid-19 cases have plummeted and restrictions have been eased since July. Moreover, the government’s “Stimulus 4.0” package should support spending, and the semiconductor sector should remain robust. That said, a resurgence in cases—especially given the low vaccination rate—is a key risk.
Ho Woei Chen, economist at United Overseas Bank, was upbeat about the outlook:
“With Q2 21 GDP growth in line with our forecast and Taiwan resuming normal economic activities while the external outlook remains positive, we maintain our full-year 2021 GDP growth forecast at 5.9%.”
Our panelists see GDP growing 5.7% in 2021, which is up 0.1 percentage points from last month’s estimate, and 3.0% in 2022.
Taiwan - GDP (USD bn) Data
|GDP (USD bn)||539||545||593||607||611|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.69||1.28 %||Dec 31|
|Exchange Rate||29.91||0.07 %||Jan 01|
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September 27, 2021
Industrial output expanded 13.7% compared to the same month of the previous year in August, which followed July's 14.4% increase.
September 7, 2021
Consumer prices rose 0.59% from the previous month in August, accelerating from July's 0.21% increase.
September 7, 2021
Merchandise exports soared 26.9% over the same month last year in August, on the heels of July’s 34.7% jump.
September 1, 2021
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) fell to 58.5 in August from July's 59.7.
August 23, 2021
Industrial output grew 13.9% compared to the same month a year earlier in July, which was a deterioration from June's 18.0% increase.