Taiwan’s economic growth accelerated in the fourth quarter on the back of a recovery in consumer spending, advance estimates from the Directorate-General of Budget, Accounting and Statistics showed Thursday.
Real gross domestic product expanded 4.88 percent on a yearly basis in the fourth quarter, following a 3.7 percent rise in the third quarter. The growth was forecast to rise marginally to 3.8 percent.
On a quarter-on-quarter seasonally-adjusted annualized basis, GDP climbed 11.13 percent after posting a marginal 1.07 percent expansion a quarter ago.
In the full-year of 2021, GDP grew 6.28 percent compared to 3.36 percent growth in 2020.
In the fourth quarter, real exports of goods and services rose 11.92 percent, mainly driven by the strong foreign demand for manufacturing products, as well as thriving shipment services. Imports also increased by 15.56 percent.
Real private final consumption climbed 1.62 percent, an upturn from the 5.60 percent decline in the previous quarter. Growth in government spending advanced to 5.1 percent from 3.31 percent.
Gross fixed capital formation moved up 13.92 percent, but slower than the 31.69 percent surge in the prior quarter.
Growth is set to slow over the coming quarters on the back of weaker exports, while Omicron poses a major downside risk to the economy, Gareth Leather, an economist at Capital Economics, said.
“Despite the strong performance, we doubt the central bank will be in any hurry to raise interest rates provided inflation continues to fall back, as we anticipate,” Leather added.
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