The nation’s economy grew 1.72 percent last quarter, missing the Directorate-General of Budget, Accounting and Statistics’ (DGBAS) February forecast of 1.82 percent, as private and government consumption fared weaker than expected.
The economy grew at the slowest pace since the third quarter of 2016, suggesting that a global slowdown was still affecting the nation.
“The growth momentum slowed last quarter, but the nation will still report a steady growth,” DGBAS senior specialist Chen Ya-mei (陳雅枚) said.
Private consumption came in 0.34 percentage points lower than forecast at 1.45 percent, the agency said in a report.
The figure is significantly lower than last year’s 2.55 percent increase, the agency said.
The DGBAS attributed the decline to soft sales of vehicles, scooters, and information and communication devices, mainly smartphones.
Demand for vehicles peaked after the government introduced a three-year subsidy plan for purchases, Chen said.
In the absence of stronger stimulus measures or new models, vehicle sales are unlikely to pick up, she added.
Government expenditures also disappointed, with a contraction of 3.37 percent, compared with a 6.63 percent gain last year.
However, capital formation rose 6.8 percent, compared with an increase of 0.07 percent last year, the report said, as local semiconductor firms bought capital equipment to meet expansion needs.
About 40 local companies with overseas operations have filed applications to invest NT$205.7 billion (US$6.66 billion) at home to cope with trade tensions and other risks, the Ministry of Economic Affairs has said.
The benefits of capital repatriation is not yet evident, but might become so in the coming quarters, the DGBAS said.
Exports in the first quarter declined 4.19 percent annually in US dollar terms, ending 10 consecutive months of increases, the report said.
Exports of electronics components, the backbone of outbound shipments, dropped by 7.25 percent annually, it said.
Exports of metals and chemicals also retreated about 10 percent from a year earlier, it added.
Audio and video electronics products climbed 18.59 percent, while machinery products rose 2.25 percent, the report said, adding that the total export value was NT$23.61 trillion, 1.42 percent less than forecast.
Poor exports also hit the nation’s major trading rivals, such as South Korea, Singapore and Hong Kong, Chen said.
Imports decreased 0.81 percent annually in US dollar terms, the report said.
Cheaper oil and raw material prices weighed on imports, the DGBAS said, adding that imports of capital equipment bucked the trend with a 15.41 percent increase.
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