Taiwan's GDP growth accelerated in the fourth quarter of 2012, backed by strong domestic demand and external trade, official data showed Thursday. Taiwan also upwardly revised its growth expectations for 2013, citing a possible sharp recovery in exports.
The gross domestic product expanded 3.42 percent year-on-year in the fourth quarter, advance estimates released by the Director-General of Budget Accounting and Statistics showed. This was faster than a 0.98 percent growth reported in the third quarter and slightly better than the forecast for a 3 percent expansion.
The growth in overall domestic demand picked up momentum in the fourth quarter. with the annual rate of increase accelerating to 2.06 percent from 0.43 percent in the third quarter. Private spending rose 1.62 percent, but government consumption fell 0.67 percent. Gross capital formation rebounded to grow 5.82 percent.
Export growth quickened to 3.98 percent from 1.77 percent in the previous quarter. The rate of growth in imports advanced to 2.16 percent from 1.22 percent.
The seasonally adjusted GDP increased at an annualized rate of 6 percent in the fourth quarter compared to an increase of 3.41 percent in the previous quarter. For the whole of 2012, the economy expanded 1.25 percent, slower than the previous year's 4.07 percent growth.
At the same time, the agency revised up its GDP forecast for 2013 to 3.53 percent from a previously predicted 3.15 percent growth. The statistical agency said that benefiting from growing demand for its electronic products, Taiwan's exports are expected to grow 5.85 percent this year after stagnating last year.
The consumer price index is forecast to rise 1.31 percent this year, slower than the 1.93 percent rise last year.
The improvement in Taiwan's economic growth adds to evidence that Asia is regaining momentum after a brief period of gloom triggered by the downturn in Europe. The Philippine economy expanded 6.8 percent year-on-year in the fourth quarter, taking the annual rate of growth to 6.6 percent in 2012, the National Statistical Coordination Board reported.
With China showing signs of recovery, the prospects of the developing economies of Asia have brightened again. Official figures earlier this month showed that China's economic growth accelerated for the first time in two years in the fourth quarter underpinned by robust industrial output and investment.
In Singapore, the unemployment rate sank to a five-year low in the fourth quarter, according to the latest figures released by the Ministry of Manpower.
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