Q3 GDP growth hits 14.36%, highest in 48 years

Taiwan’s economy grew by an estimated 14.36 percent in the third quarter from a year earlier, the highest growth for the quarter in 48 years, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday.

The forecast was 2.94 percentage points higher than an August estimate.

It also marked the fourth consecutive quarter of double-digit growth.

People look around at Kuanghua Digital New Plaza in Taipei yesterday.

Photo: CNA

DGBAS specialist Chiang Hsin-yi (江心怡) said stronger-than-expected exports and business investment were key drivers of the robust third-quarter growth.

On the export front, demand for artificial intelligence applications, high-performance computing and cloud services, as well as stronger orders for electronic components used in new consumer products, helped boost exports, Chiang said.

Higher prices for exported products also helped increase export value, she said.

Export demand also supported business investment, with real investment and changes in inventories estimated to have increased 26.36 percent in the third quarter, 4.26 percentage points higher than the previous forecast, she said.

Capital equipment imports, measured in New Taiwan dollars, rose 58.5 percent in the third quarter from a year earlier, including a 35.66 percent increase in semiconductor equipment, while investment in machinery, transportation equipment, intellectual property and construction also grew, the DGBAS said.

Meanwhile, exports from industries other than electronics and information and communications technology also grew at double-digit rates, indicating a gradual recovery in traditional industries in recent quarters, Chiang said.

On the domestic front, private consumption remained strong, helped by a recovery in the auto market and the wealth effect from Taiwan stocks reaching record highs, she said.

Real private consumption grew 5.37 percent in the third quarter, 0.01 percentage points above the August forecast.

It was the second consecutive quarter in which growth exceeded 5 percent, the DGBAS said.

The last time Taiwan recorded an extended period of double-digit growth was in 1986-1987, when the economy recorded high growth for six consecutive quarters as the government gradually eased capital controls and foreign exchange restrictions, contributing to economic liberalization and an economic upswing, Chiang said.

For the first three quarters, growth is estimated to have reached 14.22 percent, the highest for the period in half a century, the DGBAS said.