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Taiwan's Economy Contracts More Than Expected In Q2

The Taiwanese economy contracted at a slightly faster rate than initially estimated, marking the first decline in more than two years, final figures from the Directorate General of Budget, Accounting & Statistics (DGBAS) showed Friday.

Gross domestic product dropped 0.18 percent year-on-year in the second quarter, faster than the 0.16 percent fall estimated earlier. The latest was the first decline in economic output since the third quarter of 2009, when GDP was down 1.41 percent.

The latest outcome follows a 0.40 percent expansion on the first quarter, which was revised up from 0.39 percent, and a 1.85 percent growth in the final quarter of 2011.

Sequentially, on an annualized basis, the seasonally adjusted GDP increased 3.45 percent in the second quarter, following a 1.52 percent growth in the preceding three-month period, which was revised down from 2.82 percent.

The DGBAS further lowered the growth forecast for the economy this year to 1.66 percent from the previously projected 2.08 percent, citing the continuing downturn in external demand. In 2013, the economy is expected to grow 3.67 percent as improvement in the global economy lifts exports.

The country's inflation is estimated to rise to 1.93 percent in 2012, before slowing to 1.08 percent next year.

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