Taiwan's Q1 GDP growth hits 13.69%, highest in 39 years

Taipei, April 30 (CNA) Taiwan's economy expanded 13.69 percent in the first quarter of this year, the fastest since 1987, fueled by soaring demand for AI-related exports, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said Thursday.

Gross domestic product (GDP) from January to March expanded 13.69 percent from a year earlier, according to preliminary DGBAS estimates, which was 2.23 percentage points higher than the budget office's last forecast in February.

The better-than-expected economic growth was driven by surging exports, which in turn boosted domestic manufacturing and investment, DGBAS specialist Chiang Hsin-yi (江心怡) told reporters.

A cash handout program launched by the government late last year, as well as increased spending spurred by stock market investment gains also led to strong consumer spending, Chiang said.

Q1 data

In a press release, the DGBAS said real exports of goods and services (meaning with the effects of inflation removed) grew by 35.25 percent in the first quarter, driven by AI and related infrastructure.

Imports also grew 27.07 percent during the same period, as many manufacturers stocked up on raw materials and capital equipment, the agency said.

Real private consumption expanded by 4.89 percent year-on-year during the first quarter, while gross capital formation, or total investment, reached 5.20 percent, amid increased investments in machinery equipment, intellectual property products and transport equipment, according to the DGBAS.

Asked by reporters about the possible economic impact of the Iran war, which began in late February and has sparked a surge in the price of oil, Chiang said it is being monitored but has been limited so far.

While there could be some impact on Taiwan's traditional manufacturing sector, the economic data for March did not clearly reflect any impact from the war, Chiang said.