The nation’s GDP expanded 2.03 percent last quarter from a year earlier, slightly slower than estimates last month of 2.06 percent, as domestic demand single-handedly supported a mild recovery, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The agency raised its forecast for GDP growth to 1.35 percent for the whole of this year, an increase of 0.13 percentage points from its prediction in August, after exports fared better than expected.
“The recovery gained traction each quarter and the pace is expected to accelerate for the rest of the year,” DGBAS Minister Chu Tzer-ming (朱澤民) told a media briefing.
The 2.03 percent pickup is the fastest in six quarters after the nation’s export-focused economy emerged from three consecutive quarters of decline in the April-to-June period, the DGBAS’ quarterly report showed.
Exports, which accounted for 75 percent of GDP growth, are forecast to increase 7.17 percent this quarter, aided by solid demand for electronics components, particularly semiconductors, the report said.
Aggressive imports of capital equipment by local semiconductor firms reflect capacity expansion needs and a rosy business outlook, Chu said, referring to spending by Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker.
Private investment increased 8.1 percent last quarter, much faster than a 1.28 percent forecast, Chu said.
The trend, coupled with government efforts to ramp up innovative industries, will lend further support to private investment and the overall economy, with GDP growth expected to reach 1.87 percent next year, Chu said.
The projection represented a marginal slowdown from 1.88 percent the agency predicted in August, which Chu attributed entirely to a higher base expected for this year.
The DGBAS said that US president-elect Donald Trump’s win at the polls has created uncertainty for Taiwan’s economy if the real-estate tycoon realizes campaign pledges to raise trade barriers.
“Taiwanese manufacturers might suffer if Trump makes Apple Inc and other firms move production lines back to the US, as many local firms supply components for its products,” Chu said.
Generally speaking, when GDP in the US gains 1 percentage point, Taiwan’s economy grows by 0.07 percentage points, Chu said.
The correlation between Taiwan and China is stronger, as Chinese tourists alone generated NT$250 billion (US$7.83 billion at the current exchange rate) in tourism revenue, or 1.5 percent of GDP, last year, Chu said.
The government has sought to offset revenue loss from declining Chinese tourism numbers by wooing travelers from other countries and has made some headway, he said.
Protectionism would surely constrain global trade and the DGBAS will offer assessments when updating growth figures in February after Trump assumes office in January, he added.
GDP growth might rise 2.37 percent this quarter, boosted by the high-sales season for consumer electronics, the report said.
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
RSS