GDP in Taiwan
Taiwan - GDP
Economy records slowest increase since Q2 2020 in the second quarter
GDP growth dipped to 3.0% year on year in the second quarter from 3.7% in Q1, marking the slowest increase since Q2 2020 and slightly undershooting market expectations. On a seasonally-adjusted quarter-on-quarter basis, economic activity declined 1.8% in Q2, contrasting the previous period's 1.6% increase. The weaker year-on-year and quarter-on-quarter readings were linked to the surge in domestic Covid-19 cases and lockdowns in China, which affected domestic and external demand respectively.
In annual terms, household spending growth hit an over two-year high of 2.9% in the second quarter, up from the first quarter's 0.6% but supported by a low base of comparison. Government spending bounced back, growing 6.4% in Q2 (Q1: -0.4% yoy). Meanwhile, fixed investment growth improved to 10.7% in Q2, from the 7.7% expansion recorded in the prior quarter, likely aided by strong investment in the semiconductor sector.
On the external front, exports of goods and services growth fell to 4.3% in Q2, marking the worst reading since Q3 2020 (Q1: +9.1% yoy). Conversely, imports of goods and services growth sped up to 8.8% in Q2 (Q1: +8.7% yoy).
On the outlook, the EIU said:
“We believe that the ongoing global chip shortage will continue to underpin gross capital formation (both fixed investment and inventory creation) in the coming quarters […]. New stimulus programmes supporting private consumption in the domestic tourism and retail sectors will also foster a sequential pick-up in household spending from July-September. However, a stronger headline recovery will be limited by relatively high domestic inflation readings, tighter credit conditions and weakness in the broader outlook for exports and industrial production.”
FocusEconomics panelists see GDP growing 3.4% in 2022, which is down 0.1 percentage points from last month’s forecast, and 2.8% in 2023.
Taiwan - GDP Data
|Economic Growth (GDP, annual variation in %)||1.5||2.2||3.3||2.8||2.7|
5 years of economic forecasts for more than 30 economic indicators.
Taiwan GDP Chart
Source: Directorate-General of Budget, Accounting & Statistics and FocusEconomics calculations.
|Bond Yield||0.69||1.28 %||Dec 31|
|Exchange Rate||29.91||0.07 %||Jan 01|
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August 18, 2022
The near-term economic impact should be limited. Longer-term risks are significant due to the potential for further sanctions, shipping disruptions and war. What happened: From 4 August, China launched a series of military drills close to Taiwan, in response to Nancy Pelosi—the Speaker of the U.S. House of Representatives—visiting Taiwan earlier in the month.
August 12, 2022
GDP growth dipped to 3.0% year on year in the second quarter from 3.7% in Q1, marking the slowest increase since Q2 2020 and slightly undershooting market expectations.
August 8, 2022
Merchandise exports rose 14.2% on an annual basis in July (June: +15.2% year-on-year) amid higher exports of electronics, machinery and mineral products.
August 5, 2022
Consumer prices fell 0.03% from the previous month in July, swinging from June's 0.38% rise.
August 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) declined from 49.8 in June to 44.6 in July.