Taiwan’s economy is expected to have grown faster in the first quarter, driven by a rebound in exports. A Reuters poll of 18 economists predicts a GDP growth of 5.65% during January-March compared to the same period last year. This growth is higher than the 4.93% year-on-year increase seen in the fourth quarter of 2023.
The strong performance in exports in the first quarter, with a 12.9% year-on-year growth, can be attributed to the increased demand for technology that powers artificial intelligence applications. Taiwan’s tech-heavy exporters, particularly chipmakers, benefitted from this demand. As a result, the manufacturing sector is experiencing a resurgence, and unemployment rates remain low.
Taiwan plays a crucial role in the global technology supply chain, catering to companies like Apple and Nvidia. Despite concerns about the global economy, especially in Taiwan’s largest export market China, the first quarter GDP growth is expected to be strong. The preliminary GDP reading will be released soon, with revised figures and forecasts to follow in the coming weeks.
SinoPac Securities Investment analyst Mickey Liao believes that the first quarter will see the highest GDP growth this year, with a forecasted dip to 3.5% in the second quarter. The Taiwan government had raised its forecast for full-year 2024 growth to 3.43% earlier this year.
In 2023, Taiwan’s economy grew at its slowest pace in 14 years, expanding by just 1.31%. However, despite these challenges, Taiwan has remained resilient and continues to be an important player in global trade.
Overall, while there are certainly uncertainties ahead for both Taiwan and the global economy as a whole
