Taiwan’s economy, which is heavily reliant on exports, is expected to have grown at a faster rate in the first quarter of 2024. This growth was driven by an increase in exports and strong demand for technology used in artificial intelligence applications. According to a Reuters poll of 18 economists, Gross Domestic Product (GDP) is projected to have expanded by 5.65% compared to the same period last year. This growth follows a 4.93% increase in GDP during the fourth quarter of the previous year.
In the first quarter, exports surged by 12.9% year-on-year, significantly improving from the 3.4% growth seen in the fourth quarter. The manufacturing sector in Taiwan has seen a resurgence due to this boost in exports, leading to low unemployment rates. Taiwan’s tech-heavy industries, particularly chipmakers, capitalized on the rising demand for AI technology and contributed significantly to this growth.
The government raised its forecast for full-year growth in 2024 to 3.43%, up from an initial prediction of 3.35%. Analysts predict that the first quarter will see the highest GDP growth for the year, with a slight dip to around 3.5% in the second quarter. Despite a slowdown last year when the economy expanded by only 1.31%, which was the slowest pace in 14 years, Taiwan’s largest export market, China, also experienced faster-than-expected growth in the first quarter, expanding by 5.3% year-on-year.
Taiwan plays a crucial role in global technology supply chains and serves companies like Apple and Nvidia while housing world’s largest contract chipmaker – Taiwan Semiconductor Manufacturing Co (TSMC). The preliminary GDP data for Taiwan will be released with limited commentary followed by revised figures with more detailed analysis and future projections