Taiwan’s economy last quarter grew 3.33 percent, beating the government forecast of 2.01 percent, as demand for devices used in 5G equipment, as well as work-from-home and remote-learning trends, proved stronger than expected, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.
It was the best performance in nine quarters, reversing a downward trend in the second quarter, thanks to robust exports and soft imports that allowed external demand to more than offset languid private consumption, the agency said.
“Strong exports accounted for the economic showing that was better than expected” and might boost full-year growth to 1.9 percent from 1.56 percent in the DGBAS’ last forecast, national income section official Wu Pei-shuan (吳佩璇) told a media briefing in Taipei.
Photo: Clare Cheng, Taipei Times
The agency is to issue its formal update on Nov. 27 after a committee meeting, she said.
Exports of electronic components in the third quarter surged 20.39 percent year-on-year, while shipments of information and communications technology products soared 20.64 percent, Wu said.
The COVID-19 pandemic has caused disruptions at workplaces, schools and recreational facilities around the world, but has created unprecedented demand for tablets, notebook computers, TVs, servers, data centers, and other technology products and solutions necessary to maintain a low-contact economy.
Restrictions imposed by Washington on China’s Huawei Technologies Co (華為) prompted the Shenzhen-based technology titan to stockpile inventory ahead of the Sept. 15 deadline and increased business at its local suppliers.
Against that backdrop, net external demand contributed 3.2 percentage points to third-quarter growth, indicating little help from the domestic front, the report said.
Private investment increased a mild 2.04 percent, while government spending increased 3.2 percent, together adding 0.91 percentage points to the growth, it said.
Government agencies have commissioned public works ahead of schedule to shore up the economy, Wu said.
Consumer spending stayed in negative territory with a 1.51 percent retreat, although a boom in domestic travel significantly eased the drop in the critical GDP component, the report said.
Outbound travel shrank 97.8 percent, similar to a 98.94 percent slump in the second quarter, Wu said.
Domestic airline revenue declined 86.89 percent, while passengers on public transportation shrank 10 percent, it said.
However, retail businesses and restaurants saw a recovery of 4.57 percent and 0.85 percent respectively, partly on the back of the Triple Stimulus Voucher Program, Wu said, but added that this effect was difficult to quantify.
Typhoon Usagi yesterday had weakened into a tropical storm, but a land warning issued by the Central Weather Administration (CWA) was still in effect in four areas in southern Taiwan. As of 5pm yesterday, Tropical Storm Usagi was over waters 120km south-southwest of Oluanpi (鵝鑾鼻), the southernmost tip of Taiwan proper, and was moving north at 9kph, CWA data showed. The storm was expected to veer northeast later yesterday. It had maximum sustained winds of 101kph, with gusts of up to 126kph, the data showed. The CWA urged residents of Kaohsiung, Pingtung County, Taitung County and the Hengchun Peninsula (恆春) to remain alert to
ONE LAST TALK: While Xi said that Taiwan was a ‘red line,’ Biden, in what is likely his last meeting with Xi as president, called for an end to China’s military activity around Taiwan China’s military intimidation and economic coercion against Taiwan are the main causes of tensions that are destabilizing peace in the Taiwan Strait, Taipei said yesterday while thanking US President Joe Biden for expressing Washington’s firm stance of maintaining peace and stability in the region. Biden and Chinese President Xi Jinping (習近平) met on Saturday for their third meeting and their first talks in seven months on the sidelines of the APEC forum in Lima, Peru. It was likely Biden’s last meeting as president with Xi. During their conversation, Biden reiterated the US’ opposition to any unilateral change to the “status quo” from either
Taiwan would participate in the 2026 APEC summit to be hosted by China after Beijing promised it would ensure the personal safety of attendees, Taiwanese national security sources said yesterday. The APEC Leaders’ Machu Picchu Declaration announced yesterday said that China would host the APEC summit in 2026. Beijing proposed hosting the summit shortly before this year’s gathering began on Friday, a national security official said, speaking on condition of anonymity. Many APEC members expressed concerns about China hosting the event and said that prior communication over the decision was insufficient, the official said. Taiwan brought up concerns about legal “guidelines” China announced in
MEET AND GREET: The White House, which called the interaction ‘just a handshake,’ did not immediately respond to a request for comment on whether Biden planned to visit Taiwan’s envoy to the APEC summit, Lin Hsin-i (林信義), on Friday invited US President Joe Biden to visit Taiwan. During the APEC Leaders’ Informal Dialogue, Lin, who represented President William Lai (賴清德) at the summit, spoke with Biden and expressed gratitude to the outgoing US president for his contribution to improving bilateral ties between Taipei and Washington over the past four years, the Ministry of Foreign Affairs said. Lin and Biden exchanged views during the conversation, with Lin extending an invitation to Biden to visit Taiwan, it said. Biden is to step down in January next year, when US president-elect Donald Trump is
RSS