DGBAS revises up Taiwan’s GDP estimate for 3Q

2014-11-04

Taiwan’s gross domestic product growth estimate for the third quarter was revised up to 3.78 percent on the back of robust demand for key exports, according to the Directorate-General of Budget, Accounting and Statistics Oct. 31.

Rising 0.16 of a percentage point from the DGBAS August estimate, the figure is the highest in seven quarters and reflects improving conditions at home and abroad.

“Exports in commodities and services grew 7.3 percent in 3Q, or 1.51 of a percentage point higher than the previous forecast,” a DGBAS official said. “This was spurred by booming demand for Taiwan’s major products like basic metals, electronics and machinery.”

Such positive sentiment is also reflected in domestic demand during the period, up 3.63 percent from a year ago. In particular, continuous promotions led to an increase of 16.33 percent in new automobile licenses and 4.81 percent in retail sales.

“But the recent lard-based oil scandals put a dent in consumer confidence and resulted in a lower-than-expected gain of 2.55 percent in food sales for 3Q, down from the 4.58 percent registered the quarter before,” the official said.

The rosy outlook also boosted private investment, especially from local airline companies expanding their fleets and semiconductor firms seeking to enhance production capacities.

According to the DGBAS, Taiwan’s economy is projected to grow 3.41 percent for the year with per capita GDP set to reach US$21,450, while increases of consumer prices will remain in check at 1.64 percent.

“If nothing unforeseen occurs, there is a good chance GDP growth for the year will be adjusted upward when we release our next estimates later this month,” the official said.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=223573&CtNode=413)