FX.co ★ Taiwan Economy Grows 6.56% In Q1, More Than Estimated

Taiwan's economy experienced a slight uptick in the first quarter, exceeding initial estimates, as reported on Thursday by the Directorate General of Budget, Accounting, and Statistics (DGBAS).

The country's Gross Domestic Product (GDP) grew by 6.56% year-on-year in the March quarter, surpassing the revised 4.83% increase observed in the December quarter. This figure also slightly exceeded the previous growth estimate of 6.51%.

Moreover, this represents the most robust growth since the second quarter of 2021, when GDP saw an 8.07% rise.

In terms of expenditure, private final consumption increased by 4.45% over the past year. This growth was primarily fueled by spending on services such as transportation, travel, restaurants, and securities transaction fees, along with a surge in outbound tourism.

Conversely, gross capital formation decreased by 4.88%, reflecting weaker investment in machinery and equipment.

Real exports of goods and services experienced a 9.11% growth, driven by increased shipments of emerging application products and inbound travel services. Imports saw a modest rise of 0.84%.

On a seasonally adjusted annualized basis, GDP rose by 1.08% quarter-on-quarter, a notable slowdown from the previous quarter's 9.96% expansion. The flash report had indicated a growth rate of 1.13%.

Looking ahead, Taiwan's real GDP is projected to grow by 3.94% in 2024, an upward revision of 0.51 percentage points from prior forecasts.

The agency also indicated that consumer prices are expected to rise by 2.07%, an upward revision of 0.22 percentage points, primarily due to price stickiness in the services sector.