Taiwan’s Economy Expand 3.37% in Q1 and Forecast to Grow 3.28% for This Year, Country’s Statistics Agency Reports

27 May

The latest economic data released by Taiwan’s Directorate General of Budget, Accounting and Statistics (DGBAS) shows Taiwan’s real GDP grew by 3.37% year-on-year in the first quarter of 2015. Set against the prior quarter, the seasonally adjust annual growth rate is at 2.74%. The government statistics agency furthermore estimates the country’s economy will grow by 3.28% this year. In contrast, the economic growth rates for United States, China, South Korea, Hong Kong and Singapore are respectively at 2.3%, 6.5%, 2.6%, 2.8 and 3.3%, according to the consultancy firm IHS Global Insight.

In the area of international trade, the country’s exports increased slightly by 0.20% (calculated in New Taiwan dollar) because of the windfall from falling crude oil and raw material prices. However, the real growth rate in exports was at 5.93%. This figure includes all service exports, such as the increasingly profitable merchanting trades, and excludes commodity prices (Taiwan’s export price index fell by 4.11% in the first quarter). Taiwan’s real import growth rate was at 2.48%. On the whole, Taiwan’s performance as outlined by DGBAS data reflects a slowdown in the global economy during the first quarter.

In terms of investments, Taiwan’s real gross fixed capital formation declined by 1.29% in the first quarter. While imports of aircrafts kept rising, investments from the island’s dominant semiconductor industry slowed. Investments in the construction sector also flattened in the same period.

As for Taiwan’s internal demand, private consumption grew by 2.52% in the first quarter. Some of the driving force behind private consumption was canceled out by the avian flu outbreak in January. Nonetheless, the purchases of new cars, smartphones and other goods were strong in the first quarter. The country also saw a significant increase in the outbound departures during the same period due to a surge of tourist travelers to Japan, the United States and Europe.

Source: Directorate General of Budget, Accounting and Statistics (DGBAS)
Top Image Credit: Stefan Orisek at www.flickr.com (CC BY 2.0)

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