Taiwan Preliminary Q1 GDP Grows Faster Than Expected

Taiwan’s economy grew slower in the first quarter than the previous three months, but still performed better than expected with the help of strong demand for semiconductor and tech exports.

Advanced estimates of the island nation’s gross domestic product (GDP) showed that it grew 3.06 percent during the January to March period, according to Taiwan’s statistics agency.

The previous quarter had shown a 4.86 percent increase, but the most recent estimate is 2.9 percent higher than what economists had forecasted.

The figure is also the slowest since the second quarter of 2020 when the economy grew 0.63 percent year-on-year.

Taiwan was able to support its growth amid the pandemic with a robust demand for tech exports as people have transitioned to remote working. A global shortage of semiconductors had also led to a boost in Taiwan’s chip production.

Consumption had increased marginally as authorities relaxed COVID-19 restrictions, but the recovery was easily offset by soaring inflation, the agency said.

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