TAIPEI (Taiwan News) — Taiwan’s official statistics agency announced that Q2 year-on-year GDP growth came in at 5.09%, slightly lower than previously forecasted 5.18%, due to weak exports.
The government agency warned that if economic growth remained unchanged in the second half of the year, the full-year economic growth estimate would drop slightly to 3.91%. However, the Directorate General of Budget, Accounting, and Statistics (DGBAS) said the pace of corporate investment has recently accelerated and the domestic economy remains stable and exhibiting an upward trend, per CNA.
Although Taiwan’s economic performance has not been as good as expected in Q2, it still ranks in first place with 5.09% growth when compared to the four Asian Tiger economies: Hong Kong (3.3%), Singapore (2.9%), and South Korea (2.3%).
The DGBAS said export goods decreased by US$4.7 billion (NT$1.5 trillion) compared to the forecast value, which was the main drag on growth. The exports in the second quarter grew by 7.87%, which was 3.35% lower than the forecast value.
"AI-driven exports were not as good as forecasted in May," said DGBAS official Wang Tsui-hua (王翠華). He said business opportunities for AI exist, but predicting the timing of AI-backed demand has been difficult.
This comment echoes previous DGBAS remarks about the uncertainty of AI-related information technology, mass production, and application processes. Wang said that TSMC raised its planned capital expenditure from US$30 billion to US$32 billion in July. Also, ASE has revised its capital expenditures upward again because of its optimism about advanced packaging and testing production capacity.
As for private consumption, thanks to a stable job market, salary increases, and a high stock market, DGBAS said private consumption grew 2.71% in real terms in the second quarter, a 0.12 % increase above the forecast.
Wang concluded that Taiwan's economy is still stable and exhibiting an upward trend. The latest economic indicator for June, announced by the National Development Council on Monday (July 29), showed a “red light” indicator representing optimism as the economy is expected to enjoy stable growth.
