Taiwan’s economy is expected to have grown faster in the first quarter of the year, driven by an increase in exports and strong demand for technology used in artificial intelligence applications. According to a Reuters poll of 18 economists, Gross Domestic Product (GDP) is projected to have expanded by 5.65% compared to the same period last year. This growth follows a 4.93% increase in GDP during the fourth quarter of the previous year.
In the first quarter, exports surged by 12.9% year-on-year, a significant improvement from the 3.4% growth seen in the fourth quarter. This boost in exports was led by Taiwan’s tech-heavy industries, particularly chipmakers, who capitalized on the rising demand for AI technology. As a result, the manufacturing sector in Taiwan has seen a resurgence, leading to low unemployment rates.
Taiwan’s largest export market, China, also experienced 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, serving companies like Apple and Nvidia, and housing the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co.
The preliminary GDP data for Taiwan will be released with limited commentary before being followed by revised figures with more detailed analysis and future projections. Despite this positive outlook for Taiwan’s economy in the first quarter, analysts predict that there may be a slight dip to around 3.5% in the second quarter due to global economic uncertainty and geopolitical tensions between China and other countries such as Japan and Australia.
Overall, Taiwan’s trade-dependent economy is showing signs of resilience despite challenges faced during previous years such as slow growth rates and trade disputes with major trading partners like China.
Taiwan’s government has raised its forecast for full-year growth in 2024 to 3.43%, up from an initial prediction of 3.35%. This comes after a year where the economy expanded by only 1