Taiwan’s economy, which is heavily reliant on exports, is expected to have grown faster in the first quarter. According to a Reuters poll, this growth was driven by an increase in exports fueled by demand for technology used in artificial intelligence applications. Economists predict that Gross Domestic Product (GDP) likely expanded by 5.65% year-on-year during January-March, which is higher compared to the 4.93% year-on-year growth in the fourth quarter of 2023.
The first-quarter GDP forecast among economists varies widely, with expectations ranging from 4.2% to as high as 7%. The growth in exports during the first quarter was particularly notable, with a 12.9% year-on-year increase compared to the previous quarter’s growth of just 3.4%. Taiwan’s tech-heavy exporters, particularly chipmakers, benefited significantly from this demand for AI technology.
Taiwan’s manufacturing sector is showing signs of strength thanks to strong export performance and low unemployment rates, contributing to a positive economic outlook. The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43% from a previous prediction of 3.35%, despite last year being one of slowest pace in recent years with only a modest growth rate of just 1.31%.
China’s robust economic growth has also played a significant role in supporting Taiwan’s economic performance as it is Taiwan’s largest export market. Taiwan plays a crucial role in the global technology supply chain, catering to companies like Apple and Nvidia and hosting significant firms like Taiwan Semiconductor Manufacturing Co., making it vital for China’s economic development.
The preliminary GDP data for Taiwan will soon be released, providing more detailed insights into the economic performance in the first quarter with more comprehensive figures and forecasts set to follow in the coming weeks.
In summary, Taiwan’s economy showed promising signs of resilience and recovery after experiencing slow growth last year due to various factors such as COVID-19 pandemic and trade tensions with China
