Taiwan’s economy is expected to have grown faster in the first quarter of the year, according to a recent Reuters poll. This growth was supported by a rebound in exports, driven by increased demand for technology used in artificial intelligence applications. Gross domestic product (GDP) is projected to have expanded by 5.65% in the first quarter compared to the same period last year, an increase from the 4.93% growth seen in the fourth quarter of 2023.
Economists predict that GDP growth in the first quarter will range from 4.2% to as high as 7%, with strong performance in exports, particularly in the tech sector, contributing to overall growth. In the first quarter, exports increased by 12.9% year-on-year, a significant jump from the 3.4% growth seen in the fourth quarter of the previous year.
Mickey Liao, an analyst at SinoPac Securities Investment, noted that low unemployment rates are benefiting from strong export performance within Taiwan’s manufacturing sector. While forecasts suggest that GDP growth may slow down slightly in the second quarter of this year and fall to 3.5%, full-year growth projections remain positive at 3.43%. Despite experiencing its slowest growth rate in over a decade with only 1.31% expansion last year, Taiwan remains a key player globally due to its connections with major companies such as Apple, Nvidia, and Taiwan Semiconductor Manufacturing Co., making it an essential element within global technology supply chains.
Taiwan’s statistics bureau has raised its full-year economic growth forecast for 2024 earlier this year from a previous prediction of 3.35% to a current estimate of 3.43%. The preliminary GDP reading for Taiwan will be released soon with revised figures expected in coming weeks which will provide more detailed information and forward-looking forecasts.
In summary, Taiwan’s trade-dependent economy is expected to have grown faster than anticipated due to increased demand for technology used in artificial intelligence applications and rebounding exports driven by strong export performance within its manufacturing sector leading low unemployment rates while still being essential globally due to its connections with major companies like Apple and Nvidia among others making it an important element within global technology supply chains
