Trade Resources Economy Taiwan's Economy Expanded at Its Fastest Pace in Six Quarters in The Three Months

Taiwan's Economy Expanded at Its Fastest Pace in Six Quarters in The Three Months

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.

Source: http://www.capacitorindustry.com/taiwans-growth-hits-3-84-as-exports
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Taiwan's Growth Hits 3.84% as Exports