Taiwan Q3 GDP slows to 2.28%, below 3% for 1st time in 5 quarters

02, Nov. 2018

TAIPEI, NNA – Taiwan’s real gross domestic product growth slowed to 2.28 percent in the July-September period, due to lower-than-expected private consumption, falling below 3 percent for the first time in five quarters.

It came in weaker than the official forecast of 2.36 percent made in August.

While GDP growth is expected to slow further to 2.09 percent on year in October-December, the economy should expand 2.67 percent for the whole of calendar 2018, as largely projected earlier, the Directorate General of Budget, Accounting and Statistics, the government’s statistics bureau, said Wednesday, according to the Central News Agency.

It is too early to assess how the U.S.-China trade dispute is affecting Taiwan’s economic growth, a government official said.

Private consumption grew 1.90 percent on year in the third quarter, lower than the 2.31 percent forecast issued in August. Higher energy costs pushed up fuel sales and spending on eating out gained on seasonal factors, but spending on new vehicles declined.

Taiwanese exports in U.S. dollar terms hit a quarterly high in the third quarter, backed by a modest global economic growth, but the year-on-year rise in exports was a modest 3.05 percent due to high growth seen a year before. Shipments of electronic parts, Taiwan’s key export item, gained 2.46 percent.

The third quarter GDP was also supported by the total sum of capital expenditures and inventories by the government and the private sector. It rose a real 17.46 percent on year, above the August forecast of 14.94 percent.

Business investment in equipment for producing semiconductors increased 16.91 percent on year, making up for a decline in spending by airlines on equipment and research and development.