Taiwan posts better-than-expected Q3 GDP on strong exports

Taipei,  Taiwan’s economy grew 3.33 percent in the third quarter from a year earlier, its best performance in nine quarters, boosted by strong electronics and tech exports, the country’s statistics bureau said Friday.

The preliminary estimate of 3.33 percent growth in GDP followed a 0.58 percent contraction in the second quarter, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

It also beat a DGBAS forecast of 2.01 percent growth in the third quarter made in August.

Export goods calculated in U.S. dollar terms rose 6.01 percent, with electronic components, and information technology and video and audio products showing the strongest growth — 20.39 percent and 20.64 percent, respectively, according to the DGBAS.

Although exports of basic metal products, machinery, and rubber and plastic products were down 8.18 percent, 8.38 percent and 4.65 percent, respectively, the decline was lower than in the second quarter, the DGBAS said.

Total merchandise and service exports in the third quarter grew 3.54 percent while imports were down 1.77 percent year-on-year, the DGBAS figures showed.

Private consumption, meanwhile, was down 1.51 percent, despite 4.54 percent growth in retail sales and 0.85 percent growth in food and beverage sales during the quarter.

While government spending grew 3.20 percent, capital formation rose 2.04 percent in the third quarter, the DGBAS said.

Overall, foreign demand accounted for 3.2 percentage point of the third quarter growth, while domestic demand contributed 0.13 percentage points, according to the DGBAS.

 

Source: Focus Taiwan News Channel

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