Taiwan’s economy is expected to have grown at a faster pace in the first quarter of 2024, driven by a surge in exports. A survey of 18 economists conducted by Reuters predicts that the country’s GDP will expand by 5.65% during January-March compared to the same period last year. This growth rate is higher than the 4.93% increase seen in the fourth quarter of 2023.
Taiwan’s tech-heavy exporters, particularly chipmakers, benefited from increased demand for technology that powers artificial intelligence applications. As a result, the manufacturing sector is experiencing a resurgence, and unemployment rates remain low. The strong performance in exports was driven by Taiwan’s crucial role in the global technology supply chain, catering to companies such as Apple and Nvidia.
While there are concerns about global economic conditions, especially in Taiwan’s largest export market China, analyst Mickey Liao from SinoPac Securities Investment believes that the first quarter will see the highest GDP growth this year, with a forecasted dip to 3.5% in the second quarter. Despite this dip, the Taiwan government had raised its full-year growth forecast for 2024 to 3.43%. In 2023, the economy grew at its slowest pace in 14 years, expanding by just 1.31%.
The preliminary GDP reading will be released soon with revised figures and forecasts to follow in the coming weeks.
