Taiwan’s economy is expected to have grown faster in the first quarter, according to a Reuters poll. This growth is driven by an increase in exports, particularly in technology used in artificial intelligence (AI) applications. Economists predict that Gross Domestic Product (GDP) likely expanded by 5.65% year-on-year during January-March, which is higher compared to the 4.93% year-on-year growth in the fourth quarter of 2023.
The first-quarter GDP forecast varies among economists, with expectations ranging from 4.2% to as high as 7%. Taiwan’s tech-heavy exporters, particularly chipmakers, benefitted from the demand for AI technology. The manufacturing sector in Taiwan is regaining strength due to strong export performance and low unemployment rates, contributing to the positive economic outlook. The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43% from a previous prediction of 3.35%.
Last year, Taiwan’s economy grew by 1.31%, the slowest pace in 14 years. However, robust growth in China’s economy, Taiwan’s largest export market, also played a role in supporting Taiwan’s economic performance. Taiwan is a crucial player in the global technology supply chain and caters to companies like Apple and Nvidia as well as hosting significant firms like Taiwan Semiconductor Manufacturing Co., which have contributed significantly to its economy.
The preliminary GDP data for Taiwan will be released soon, providing insights into the economic performance in the first quarter with more detailed figures and forecasts to follow in the coming weeks.
In summary, Taiwan’s trade-dependent economy is expected to have grown faster in Q1 due to increased exports driven by demand for AI technology used by global companies operating within their supply chains based on new data from Reuters poll. The manufacturing sector has regained strength due to strong export performance and low unemployment rates contribute positively towards its outlook for Q1 GDP expansion predictions by economists ranging from 4.2% -7%.