Taiwan’s economy, driven by exports, is expected to have grown at a faster pace in the first quarter of the year, with a projected GDP expansion of 5.65% year-on-year during January-March. This marks an improvement from the 4.93% growth seen in the fourth quarter of the previous year.
Taiwan’s technology exporters, particularly chipmakers, benefited from increased demand for products that power AI applications. The manufacturing sector regained momentum, and unemployment levels remain low due to this strong growth in the first quarter.
According to SinoPac Securities Investment analyst Mickey Liao, the first quarter is expected to see the highest GDP growth this year, with a projected slip to 3.5% in the second quarter. The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43% in February, up from a previous prediction of 3.35%. Last year, Taiwan’s economy grew at its slowest pace in 14 years, expanding by just 1.31%.
Taiwan’s largest export market, China, also saw 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 as a hub for companies like Apple, Nvidia, and Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker.
Preliminary GDP data for Taiwan will be released soon, providing an initial indication of economic performance in the first quarter
