The nation’s GDP grew 3.51 percent last year, better than the estimate in November last year of 3.43 percent, thanks to a stronger fourth-quarter showing led by private consumption amid a slowdown in external demand, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
The economy expanded 3.17 percent during the October-to-December period from the same period a year earlier, higher than the official forecast of 2.83 percent, aided by election campaigns and inbound tourism that more than offset the impact of food safety scandals, the statistics agency said in a report.
Exports ended up 5.57 percent last quarter, lower than the 6.11 percent increase projected in November last year, as slumping crude oil prices dampened petrochemical shipments, the report said.
Exports of electronics, machinery and basic metal products managed to maintain growth momentum, but the pace slowed compared with the third quarter, the report found.
Imports were up 4.59 percent last quarter, significantly lower than the previous forecast of 7.41 percent, as firms became cautious about raw material and capital equipment purchases, the report said.
Weaker imports are favorable for trade surpluses that helped lift GDP growth by 1.1 percentage points, the report said.
This means domestic demand underpinned the nation’s GDP growth last quarter, contributing 2.29 percentage points, the report said.
Private consumption gained 2.33 percent last quarter, with tourist numbers increasing 7.62 percent and retail sales up 3.08 percent, the report said, adding that restaurant revenues grew a tiny 0.29 percent due to food safety scandals.
Judging by sector contributions, the manufacturing industry alone boosted GDP growth last quarter by 2.12 percentage points, while construction firms, retailers, financial service providers and other sectors chipped in the rest, the report said.
Hotels and restaurants dragged on the economy by 0.02 percentage points and utility suppliers sapped another 0.04 percentage points, the report said.
The strong demand for new-generation mobile devices supplied the catalyst for semiconductor makers and critical component vendors, the report said.
The fourth-quarter data attracted mixed reviews.
Standard Chartered PLC voiced disappointment, but Australia and New Zealand Banking Group Ltd held a positive view.
“Taiwan’s preliminary GDP growth last quarter turned out disappointing,” Standard Chartered Taipei-based economist Tony Phoo (符銘財) said in a note.
The British banking group had projected a 4.6 percent increase for last quarter and attributed the gap to softer private consumption and investment data.
Hong Kong-based ANZ economist Raymond Yeung (楊宇霆) said Taiwan’s growth momentum picked up significantly last quarter on the back of private consumption.
“We remain optimistic on Taiwan’s economic outlook backed by the solid electronics supply chain,” Yeung said.
Export orders grew 7.9 percent last quarter to a record high of US$132.6 billion (NT$4.18 trillion), the economist said, adding that the orders would translate into active business activity going forward.
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