The Directorate-General of Budget, Accounting and Statistics (DGBAS) yesterday upgraded its first-quarter GDP growth expectation for Taiwan to 5.37 percent after in February estimating 3.46 percent for the period.
The upgrade reflects stronger-than-expected exports due to demand for technology goods, and solid capital formation on the part of the government, public enterprises and private firms, the agency said in a statement.
“Due to the strong demand for electronic, and information and communications products, real exports of goods and services grew by 20.11 percent year-on-year” in the first quarter, the statement said, adding that “imports also grew by 23.66 percent year-on-year.”
Photo: Ritchie B. Tongo, EPA-EFE
“Regarding gross capital formation, investments in machinery equipment, construction and intellectual property products increased,” it said.
Combining inventory changes, real gross capital formation expanded 14.72 percent year-on-year, it said.
The 5.37 percent GDP growth in the January-to-March quarter accelerated from 2.90 percent in the previous quarter and marked the strongest expansion since the first quarter last year, when it was 6.64 percent, DGBAS data showed.
The agency’s preliminary GDP data, which are to be revised after more data are collected in the coming weeks, exceeded Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of 4.2 percent.
“Exports of artificial intelligence-related goods are booming and uncertainty over US tariffs has led manufacturers to front-load goods in advance, while firms continue to invest in advanced semiconductor process technologies and a stable labor market supports domestic consumption,” Yuanta said of its prediction in a note ahead of the DGBAS statement.
In February, the DGBAS forecast Taiwan’s full-year economic growth would be 3.14 percent.
However, several research institutes in the past few weeks revised their predictions to below 3 percent, citing US tariff concerns and shifting dynamics in global trade.
US President Donald Trump on April 2 imposed a 32 percent “reciprocal” tariff on Taiwan, but on April 9 paused it for 90 days, although a 10 percent baseline tariff remains in place.
The initial tariffs would still have a substantial effect on growth, given Taiwan is a trade-reliant economy and the US accounted for 23.4 percent of Taiwan’s overall exports last year.
The Chung-Hua Institution for Economic Research (中華經濟研究院) last month cut its full-year GDP growth forecast to 0.16 percent in the worst-case scenario.
Last week, the IMF forecast that Taiwan’s economy would grow 2.9 percent, while S&P Global predicted 2.1 percent GDP growth this year.
If growth rates in the final three quarters follow the DGBAS’ forecasts, this year’s GDP growth would be 3.6 percent, the agency said yesterday, although the projection did not take into account the effects of US tariffs.
The agency is scheduled to update its full-year GDP growth data at the end of this month.
NEXT GENERATION: The four plants in the Central Taiwan Science Park, designated Fab 25, would consist of four 1.4-nanometer wafer manufacturing plants, TSMC said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to begin construction of four new plants later this year, with the aim to officially launch production of 2-nanometer semiconductor wafers by late 2028, Central Taiwan Science Park Bureau director-general Hsu Maw-shin (許茂新) said. Hsu made the announcement at an event on Friday evening celebrating the Central Taiwan Science Park’s 22nd anniversary. The second phase of the park’s expansion would commence with the initial construction of water detention ponds and other structures aimed at soil and water conservation, Hsu said. TSMC has officially leased the land, with the Central Taiwan Science Park having handed over the
AUKUS: The Australian Ambassador to the US said his country is working with the Pentagon and he is confident that submarine issues will be resolved Australian Ambassador to the US Kevin Rudd on Friday said that if Taiwan were to fall to China’s occupation, it would unleash China’s military capacities and capabilities more broadly. He also said his country is working with the Pentagon on the US Department of Defense’s review of the AUKUS submarine project and is confident that all issues raised will be resolved. Rudd, who served as Australian prime minister from 2007 to 2010 and for three months in 2013, made the remarks at the Aspen Security Forum in Colorado and stressed the longstanding US-Australia alliance and his close relationship with the US Undersecretary
‘WORLD WAR III’: Republican Representative Marjorie Taylor Greene said the aid would inflame tensions, but her amendment was rejected 421 votes against six The US House of Representatives on Friday passed the Department of Defense Appropriations Act for fiscal 2026, which includes US$500 million for Taiwan. The bill, which totals US$831.5 billion in discretionary spending, passed in a 221-209 vote. According to the bill, the funds for Taiwan would be administered by the US Defense Security Cooperation Agency and would remain available through Sept. 30, 2027, for the Taiwan Security Cooperation Initiative. The legislation authorizes the US Secretary of Defense, with the agreement of the US Secretary of State, to use the funds to assist Taiwan in procuring defense articles and services, and military training. Republican Representative
TAIWAN IS TAIWAN: US Representative Tom Tiffany said the amendment was not controversial, as ‘Taiwan is not — nor has it ever been — part of Communist China’ The US House of Representatives on Friday passed an amendment banning the US Department of Defense from creating, buying or displaying any map that shows Taiwan as part of the People’s Republic of China (PRC). The “Honest Maps” amendment was approved in a voice vote on Friday as part of the Department of Defense Appropriations Act for the 2026 fiscal year. The amendment prohibits using any funds from the act to create, buy or display maps that show Taiwan, Kinmen, Matsu, Penghu, Wuciou (烏坵), Green Island (綠島) or Orchid Island (Lanyu, 蘭嶼) as part of the PRC. The act includes US$831.5 billion in
RSS