Taiwan GDP To Grow At Slowest Pace In 5 Years

taiwan aug20 28may20 lt

Taiwan's economy is forecast to grow at the slowest pace in five years in 2020 as coronavirus, or Covid-19, pandemic has weighed on consumption, the Directorate General of Budget, Accounting & Statistics, or DGBAS, said on Thursday.

Gross domestic product is forecast to grow 1.67 percent this year, much slower than the 2.71 percent growth logged in 2019. The 2020 full year outlook was downgraded from 2.37 percent.

In the first quarter, GDP advanced 1.59 percent compared to the previous estimate of 1.54 percent. This was also slower than the 3.29 percent growth seen in the preceding quarter.

On a quarter-on-quarter, seasonally-adjusted annualized basis, GDP contracted 3.57 percent compared to 6.56 percent expansion seen a quarter ago.

On the demand side, real private final consumption fell 1.58 percent annually in the first quarter, a reversal from the 2.95 percent growth in the previous quarter.

Real gross capital formation expanded 5.70 percent led by the growth of the investment in transportation equipments, constructions and intellectual property products.

Meanwhile, exports and imports of goods and services dropped 2.37 percent and 3.95 percent, respectively.

The agency said Taiwan's export-related manufacturing activities are less affected from the pandemic since there have been no curfew or lockdown measures so far.
However, due to weakened global demand, slumping oil price and reducing tourists, exports of goods and services are forecast to shrink 0.70 percent this year.

Real private consumption is expected to contract 0.24 percent, while private fixed capital formation is forecast to grow by 2.31 percent in 2020.

Consumer prices will decrease 0.32 percent this year, which was revised downward by 0.94 percentage point, mainly reflecting the declining prices of oil and raw material.

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