Taiwan: Economy accelerates in Q2
August 16, 2013
In the second quarter, GDP rose 2.5% over the same period last year, according to the advance estimate released on 16 August. The reading came in well above both the revised 1.6% expansion recorded in the first quarter (previously reported: +1.5%) and market expectations of a 2.3% increase.
The performance in the second quarter was the result of sharp improvement in both private consumption and the external sector. Private consumption expanded 1.7% (Q1: +0.3% year-on-year), whereas public spending contracted 0.2% (Q1: +1.3% yoy). Gross fixed investment decelerated from a revised 6.3% expansion in Q1 to a 3.8% rise in Q2.
On the external side of the economy, exports of goods and services grew 5.2% (Q1: +5.0% yoy) while imports expanded a softer 3.2% (Q1: +6.7% yoy). As a result, the net contribution to overall growth by the external sector improved from a flat rate in Q1 to a 2.1 percentage-point contribution in Q2.
On a quarterly basis, GDP rose 0.6% over the previous period in seasonally adjusted terms, which contrasted the 0.6% contraction observed in the first quarter.
The government sees GDP expanding 2.3% in 2013 and 3.4% in 2014. FocusEconomics Consensus Forecast panellists project GDP to grow 3.5% this year, which is unchanged from last month's forecast. For 2014, the panel estimates that economic activity will increase 4.0%.