Taiwan’s economy is expected to have grown faster in the first quarter of 2024, according to a Reuters poll. This growth is driven by an increase in exports due to demand for technology used in artificial intelligence (AI) applications. Economists predict that Gross Domestic Product (GDP) will likely expand by 5.65% year-on-year during January-March, higher than the 4.93% year-on-year growth in the fourth quarter of 2023.
The forecast for first-quarter GDP varies among economists, with expectations ranging from 4.2% to as high as 7%. The growth in exports was notable, with a 12.9% year-on-year increase compared to the previous quarter’s 3.4%. Taiwan’s tech-heavy exporters, particularly chipmakers, benefitted from the demand for AI technology.
Taiwan’s manufacturing sector is regaining strength due to strong export performance and low unemployment rates, contributing positively to the economic outlook. The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43% from a previous prediction of 3.35%. Last year, Taiwan’s economy grew by just 1.31%, the slowest pace in over a decade.
The robust growth in China’s economy also played a significant role in supporting Taiwan’s economic performance as it is their largest export market. Taiwan is a crucial player in the global technology supply chain, catering to companies such as Apple and Nvidia and hosting significant firms like Taiwan Semiconductor Manufacturing Co.
Preliminary GDP data for Taiwan will be released soon, providing insights into the economic performance of the country in the first quarter with more detailed figures and forecasts following shortly after.
In conclusion, Taiwan’s trade-dependent economy is expected to have grown faster than expected during Q1 due to increased exports driven by demand for AI technology applications and low unemployment rates contributing positively towards its economic outlook while being supported by robust growth of China’s economy – their largest export market – along with being an essential player in global technology supply chain catering major corporations worldwide such as Apple and Nvidia hosting significant firms like Taiwan Semiconductor Manufacturing Co