Taiwan’s economic growth improved slightly less than initially?estimated in the third quarter, and the economy is expected to grow more slowly in the coming year amid global challenges, official data showed Tuesday
Gross domestic product advanced 4.01 percent year-on-year basis after a revised 2.95 percent rise in the second quarter, latest figures released by the Directorate General of Budget, Accounting & Statistics revealed.
In the initial estimate, the rate of growth for the third quarter was 4.10 percent.
On a quarter-on-quarter seasonally-adjusted annualized basis, GDP expanded 7.51 percent, in contrast to the 9.15 percent contraction a quarter ago. The latest growth rate was revised up from 6.63 percent.
On the expenditure side, private consumption grew 6.95 percent annually, primarily due to the recovery in consumption such as retail, dining out, recreation, and transportation, in comparison to the low base of the nationwide pandemic alert period in 2021.
Meanwhile, gross capital formation rose only 0.31 percent from last year, despite investment in machinery, equipment, construction, and intellectual property products growing continuously.
Exports of goods and services were up 2.75 percent, following the second quarter’s 4.75 percent rise. The slowdown was due to weakened global demand and intensified inventory adjustment.
Imports also rose at a slower pace of 2.30 percent after climbing 9.81 percent.
Looking ahead, the domestic economy will be impacted by lower exports due to the high prices of oil and raw materials caused by the Russia-Ukraine war and the persistent bottlenecks in the global supply chain, along with the zero-Covid policy in China also weighing on the global economy.
Citing these, the DGBAS predicted real GDP growth of 3.06 percent and 2.75 percent in 2022 and 2023, respectively.
Taiwan lowered this year’s real GDP projection to 3.06 percent from 3.76 percent, lifting the inflation outlook to 2.94 percent.