GDP reading: The economy softened in the second quarter, with GDP expanding 5.1% year on year (Q1: +6.6 yoy). However, the reading was above market expectations. The slowdown was due to softer readings for private spending and net trade, which more than offset stronger figures for public spending and investment. On a seasonally-adjusted quarter-on-quarter basis,
GDP reading: GDP growth improved to 5.4% year on year in the first quarter, from 2.9% in the fourth quarter of last year. The reading was well above market expectations, and was driven by bumper readings for fixed investment and exports. This was linked to strong global demand for the country’s IT and electronics, and
Latest bank decision: At its meeting on 20 March, Taiwan’s Central Bank decided to keep the discount rate unchanged at 2.00%. Monetary policy drivers: Rate cuts were not warranted, given that the economy is performing well as the export sector rides the global AI boom. On the flipside, rate hikes were unnecessary given that inflation
Latest bank decision: At its meeting on 19 December, Taiwan’s Central Bank decided to keep the discount rate unchanged at 2.00%. Key drivers: The decision not to hike policy rates further was driven by moderate headline and core inflation: In recent months, both have been close to or below 2.0%. On the flipside, rate cuts
Latest bank decision: At its meeting on 19 September, Taiwan’s Central Bank decided to keep the discount rate unchanged at 2.00%. Housing concerns dissuade any rate changes: The decision not to hike policy rates further was driven by moderate headline and core inflation: in August, the former was slightly above 2.0% and the latter somewhat
Merchandise exports rose 3.1% in annual terms in July (June: +23.5% year-on-year), roughly half market expectations. July’s figure marked the slowest expansion since February. While IT exports surged by over a third, they were partly offset by falls in all other export categories. Looking at key trading partners, higher shipments to the U.S. offset lower
GDP reading: GDP expanded 1.8% year on year in Q4 (Q3: +4.2 yoy), marking the worst result since Q3 2023 and undershooting market expectations. The external sector subtracted heavily from growth despite strong exports, partly offsetting buoyant domestic demand. On a seasonally-adjusted quarter-on-quarter basis, economic growth picked up to 0.5% in Q4 from the previous
GDP reading: GDP increased 4.0% on an annual basis in Q3 (Q2: +5.1% year on year), the softest growth since Q3 2023 but well above market expectations. The economy was largely driven by government spending and investment, as private consumption was fairly muted and net exports subtracted from growth. On a seasonally-adjusted quarter-on-quarter basis, economic
At its meeting on 13 June, the Central Bank of the Republic of China (Taiwan) decided to keep the discount rate, the rate on refinancing of secured loans, and the rate on temporary accommodations unchanged at 2.00% 2.38% and 4.25% respectively. This followed rate hikes in March. The decision not to hike policy rates further
Merchandise exports climbed 7.6% over the same month last year in May (April: +1.5% year-on-year), overshooting market expectations. Meanwhile, merchandise imports rose 1.8% on an annual basis in May (April: +8.4% yoy). The soft imports data hints at equally soft domestic demand. As a result, the merchandise trade balance improved from the previous month, recording