Taiwan’s tech-heavy economy is predicted to have experienced a faster growth rate in the first quarter, driven by a surge in exports fueled by strong demand for technology used in artificial intelligence (AI) applications. According to a Reuters poll of 18 economists, Gross Domestic Product (GDP) is expected to have expanded by 5.65% year-on-year from January to March, higher than the 4.93% increase recorded in the fourth quarter of 2023.
First-quarter exports increased by 12.9% compared to the previous year, an improvement from the 3.4% growth seen in the fourth quarter. Taiwan’s tech-heavy exporters, especially chipmakers, benefited from this surge in AI-related demand. This led to a regain of momentum in the manufacturing sector and low unemployment rates. Analysts believe that the first quarter will likely see the strongest GDP growth this year, with a potential slowdown to 3.5% in the second quarter.
The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43%, up from a previous estimate of 3.35%. In 2023, Taiwan’s economy expanded by only 1.31%, marking its slowest growth rate in fourteen years.
China, Taiwan’s largest export market, also experienced faster-than-expected growth in the first quarter, expanding by 5.3% year-on-year.
Taiwan plays a critical role in global technology supply chains and serves major companies like Apple and Nvidia. It is also home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co.
Preliminary GDP data for Taiwan will soon be released followed by revised figures with more detailed analysis and forward-looking forecasts.
In summary, Taiwan’s tech-dependent economy has shown signs of strong growth due to an increase in exports fueled by AI applications demand in Q1 of this year according to experts predictions . The manufacturing sector has regained momentum and unemployment rates remain low thanks to this surge