Taiwan’s Economy Expands 8.79% QoQ, Tech Exports Recover After Year-Long Decline

Summary

  • Playing a crucial role in the worldwide tech supply chain and serving as home to the biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, Taiwan is influential in the global tech landscape.
  • Favorably, Taiwan’s economy experienced quarter-on-quarter growth, recording an annualized rate of 8.79%.
  • Year-on-year GDP growth for Q3 stands at 2.32%.
  • After seeing a year of downward trend, Taiwan’s exports – an essential component of the country’s economic state of affairs, saw a resurgence in September.
  • After a dip of 5.1% in Q3, the fourth quarter witnessed a year-on-year export growth of 3.4%. Also, the trade surplus hit a 131% year-on-year rise in the concluding quarter of the year.
  • Annual growth of 1.4% fell slightly short of the statistics bureau’s November projection of 1.42% making it the most sluggish growth over 14 years which was less than the predicted 2.45% growth for 2022.
  • In the coming weeks, revised figures with additional details and forward-looking predictions will be released.

Taiwan’s Technology and Economic Growth

Being a pivotal player in the international technology supply chain and housing Taiwan Semiconductor Manufacturing Co Ltd, the world’s biggest contract chipmaker, Taiwan is an important contributor to the worldwide tech scene.

In terms of expansion, Taiwan’s economy showed quarter-on-quarter growth at a seasonally adjusted rate of 8.79%.

Net Exports and GDP Growth

An annual GDP growth of 2.32% was recorded in the third quarter.

The country’s exports, being a core factor in Taiwan’s economy, bounced back in September, ending the year-long downturn.

Trade Surplus and Full-Year Growth

The last quarter of the year observed a year-on-year increase in exports by 3.4%, following a third-quarter contraction of 5.1%. Simultaneously, a surge in Taiwan’s trade surplus was witnessed at 131% year-on-year in the closing quarter of the year.

Unfortunately, the full-years growth of 1.4% fell slightly short of the 1.42% projection made by the statistics bureau in November, marking the slowest pace in 14 years and even lower than the 2.45% growth forecasted for 2022.

Upcoming Statistics and Forecast

In a few weeks, Taiwan’s statistics agency is set to release revised figures, along with additional data and future estimates.

Pending the availability of revised data and updates, trading implications remain uncertain. However, these changes in Taiwan’s economy can influence the forex market and may impact trading decisions, specifically in technology-related assets.

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