Taiwan’s economy is expected to have grown faster in the first quarter of the year, driven by a surge in exports and strong demand for technology used in artificial intelligence applications. According to a Reuters poll of 18 economists, Gross Domestic Product (GDP) is projected to have expanded by 5.65% compared to the same period last year. This growth follows a 4.93% increase in GDP during the fourth quarter of the previous year.
In the first quarter, exports surged by 12.9% year-on-year, a significant improvement from the 3.4% growth seen in the fourth quarter. The boost in exports was led by Taiwan’s tech-heavy industries, particularly chipmakers, who capitalized on the rising demand for AI technology. As a result, the manufacturing sector in Taiwan has seen a resurgence, leading to low unemployment rates.
Taiwan’s largest export market, China, also experienced faster-than-expected growth in the first quarter, expanding by 5.3% year-on-year. Taiwan plays a crucial role in the global technology supply chain, serving companies like Apple and Nvidia, and housing the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co.
The preliminary GDP data for Taiwan will be released in a statement with limited commentary, followed by revised figures with more detailed analysis and future projections. Analysts predict that the first quarter will see the highest GDP growth for the year, with a slight dip to around 3.5% in the second quarter.
Despite this positive outlook for Taiwan’s economy in the first quarter, there are still challenges that need to be addressed. For instance, tensions between China and other countries may affect trade flows and lead to uncertainty for businesses operating within Taiwan’s borders.
Overall though, Taiwan’s economy remains resilient and well positioned to take advantage of emerging opportunities such as those presented by AI technology. With continued strong performance from its tech industry and favorable economic conditions worldwide
