Taiwan’s economy is expected to have grown faster in the first quarter of the year, with a rebound in exports driving the growth. This is due to increased demand for technology used in artificial intelligence applications. GDP is forecasted to have expanded by 5.65% compared to the same period last year, an increase from the 4.93% growth seen in the fourth quarter of 2023.
According to a Reuters poll of 18 economists, GDP growth predictions for the first quarter varied from 4.2% to as high as 7%. The strong performance in exports, particularly in the tech sector, has contributed significantly to the overall growth of the economy. 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, notes that low unemployment rates are benefiting from this strong export performance within the manufacturing sector. While Taiwan’s economy is expected to show its highest GDP growth for
