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Taiwan's Q1 GDP up 2.56%, higher than forecast

2017/04/28 21:36:53

Taipei, April 28 (CNA) Taiwan's gross domestic product (GDP) rose 2.56 percent in the first quarter year-on-year, beating an earlier forecast of 2.45 percent made in February, according to an advance estimate from the Directorate General of Budget, Accounting and Statistics (DGBAS) released on Friday.

The figure marked an increase of 0.11 percentage points, and after seasonal adjustment, the Q1 GDP grew 0.72 percent from the previous quarter and 2.93 percent from the same quarter of last year, the DGBAS said.

DGBAS specialist Huang Wei-chieh (黃偉傑) said the growth could help boost the directorate's forecast for the economic growth of the country for 2017 from 1.92 percent to 1.95 percent, and he expressed optimism that the economy will grow stably this year.

Despite weak domestic demand, the global economy was recovering gradually and domestic investment was warming up during the quarter, Huang went on, adding that he therefore felt optimistic toward GDP growth in the second, third and fourth quarters of this year.

According to the latest DGBAS advance estimate, on the demand side, real private final consumption grew by 1.62 percent year-on-year in Q1, mainly reflecting an increase of consumption on housing, water, electricity, gas and other fuels, transport, and various goods and services.

The real gross capital formation increased by 8.10 percent year-on-year, following an 8.13 percent growth in the previous quarter, mainly due to an increase in machinery and equipment investment.

Meanwhile, real exports of goods and services grew by 6.99 percent yea-on-year, mainly driven by foreign demand for electronic components. Imports also increased by 7.15 percent year-on- year, the DGBAS said.

On the production side, the manufacturing sector grew by 6.60 percent year-on-year in Q1, following a 6.16 percent growth in the previous quarter, mainly due to output expansion in the semiconductor and machinery sectors.

The wholesale and retail trade sector increased by 3.54 percent year-on-year, while the finance and insurance sector jumped by 4.09 percent, faster than the 3.36 percent and 0.53 percent growth in the previous quarter, the DGBAS said.

(By Chen Cheng-wei and Elizabeth Hsu)
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