TAIPEI — Taiwan’s economy expanded at its fastest pace in six quarters in the three months through June. The pickup is attributable to not only growth in electronics exports but also rising public- and private-sector capital investment and brisk consumer spending.
The Directorate-General of Budget, Accounting and Statistics on Thursday released a preliminary estimate of 3.84% gross domestic product growth on the year, without seasonal adjustment.
The island’s economy depends heavily on global demand for high-tech gadgetry, including notebook computers and Apple’s iPhones and iPads. Taiwan’s information technology industry is a major source of components for such devices.
The directorate-general said exports of electronics, machinery and metal products rose 2.88% from a year earlier in U.S.-dollar terms. Of the second-quarter growth, net exports accounted for 1.2 percentage points. On the other hand, the directorate-general noted exports of communications products remain weak.
Still, with key exports gaining pace, Taiwan reported a 6.86% increase in capital formation, driven by corporate and government investment in fixed assets and changes in inventories.
The statistics office said consumer spending rose 2.6% year on year, with new vehicles selling well and more tourists visiting. Consumption contributed 1.38 percentage points of the second-quarter GDP growth.
Word of Taiwan’s improving circumstances came on the heels of a U.S. announcement of 4% economic growth in the April-June period.
