The economy grew 2.58 percent last quarter, raising the nation’s GDP growth to 1.4 percent for the whole of last year, as external demand and private investment recovered at a mild, but stable pace, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The figures for last quarter and the whole of last year were both better than the agency’s forecast in November last year of 2.37 percent and 1.35 percent respectively, thanks to stronger exports than the same period the previous year, the agency said.
Taiwan is home to the world’s largest contract chipmakers, chip designers and suppliers of camera lenses and other critical components used in smartphones, personal computers and other consumer electronics devices.
Demand from major trade partners picked up during the October-to-last-month period, leading to an 11.73 percent year-on-year surge in exports, the fastest pace in five years, the DGBAS said.
Electronics shipments gained 21.86 percent, as the launch of new-generation devices by global technology brands spurred demand and Internet of Things applications became mainstream, the report said.
Stabilized raw material prices helped increase demand for chemical, mineral and other non-technology products, it said.
Recovering exports lent support to imports which gained 11.54 percent, as local technology firms bought equipment to expand capacity and maintain their technological superiority, the report said.
Compared with the third quarter, the economy grew 1.89 percent after seasonal adjustments, slowing from the 3.91 percent growth recorded the previous quarter, it said.
The number of Chinese tourists fell 40.39 percent last quarter while travelers from elsewhere gained 17.47 percent, translating into an overall decrease of 3.99 percent.
The nation’s hoteliers and retailers have shifted their focus to independent travelers from Japan, South Korea, Singapore and ASEAN.
With tourism revenue accounting for a modest share of GDP, Taiwan might emerge unscathed from the drop in Chinese tourists, Taiwan Institute of Economic Research (台灣經濟研究院) president Jeff Lin (林建甫) said.
“It would be better if the nation can patch up ties with China given the deep presence of local firms in that nation’s market,” Lin said.
The manufacturing industry underpinned the growth last quarter with a contribution of 1.78 percentage points, followed by the wholesale and retail sector at 0.57 percentage points, and transportation and logistics providers at 0.25 percentage points, the report said.
Other sectors made contributions of between 0.02 percentage points and 0.16 percentage points, it said, adding that the construction and financial services sectors dragged GDP slightly.
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