Taiwan’s economy is forecast to have grown faster in the first quarter of the year, thanks to a rebound in exports driven by increased demand for technology used in artificial intelligence applications. According to a Reuters poll of 18 economists, GDP growth in the first quarter is predicted to be between 4.2% and 7%, with an overall expansion of 5.65% compared to the same period last year.
Taiwan’s manufacturing sector has benefited from the strong export performance, leading to low unemployment rates. The tech sector has played a significant role in this growth, with exports increasing by 12.9% year-on-year in the first quarter, up from 3.4% growth in the fourth quarter of the previous year.
Mickey Liao, an analyst at SinoPac Securities Investment, noted that while the first quarter is expected to show the highest GDP growth for the year, a slight slowdown is anticipated in the second quarter, with growth projected to fall to 3.5%. Despite this, Taiwan remains a key player in the global technology supply chain and has significant ties to major companies like Apple, Nvidia and Taiwan Semiconductor Manufacturing Co.
Taiwan’s statistics bureau raised its forecast for full-year 2024 growth earlier this year from a previous prediction of 3.35% to 3.43%. While Taiwan experienced its slowest growth in 14 years last year, expanding by only
