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Taiwan's Q2 GDP growth lowest in 11 quarters (update)

Taiwan's Q2 GDP growth lowest in 11 quarters (update)

Taipei, July 31 (CNA) Taiwan's gross domestic product (GDP) rose 0.64 percent in the second quarter of 2015, well off an earlier forecast of a 3.05 percent increase, according to an advance estimate released by the government Friday.
The meager growth reflected a weak economic performance in the three-month period, including a 13.9-percent year-on-year drop in exports in June.
The second quarter GDP growth was the smallest in 11 quarters, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).
On a seasonally adjusted basis, second-quarter GDP contracted 1.97 percent from a quarter earlier. Wang Shu-chuan, a specialist with the DGBAS, said that if the agency only took into account the weaker-than-expected second quarter GDP growth, Taiwan's economy could be expected to grow 2.68 percent in 2015, lower than an expansion of more than 3 percent forecast by both the government and major think tanks.
But the actual result will depend on how the economy performs in the second half of this year, she said. In May, the DGBAS cut its forecast for Taiwan's GDP growth in 2015 to 3.28 percent from a previous estimate of 3.78 percent, citing slower exports and private consumption growth.
The DGBAS will update its forecast on Aug. 14.
Wang said the global economy showed signs of slowing down in the second quarter as demand appeared to weaken, and inventories in the electronics industry remained high, hurting Taiwan's exports, the backbone of the country's economy.
Wang said China's efforts to build its own supply chain in the manufacturing sector also compromised demand for products from Taiwan in the April-June period.
Taiwan's exports fell 1.30 percent in the second quarter from a year earlier, compared with an earlier forecast of a 3.27 percent increase.
During the same period, the country's imports, which have been affected by falling raw material prices and sluggish local demand, rose 1.93 percent, lagging behind the previous forecast of 2.41 percent.
The falling exports and lower-than-expected imports dragged down Taiwan's GDP growth by 2.07 percentage points, the DGBAS said.
Private consumption was one of the few bright spots in Taiwan's economy, rising 2.81 percent in the second quarter from a year earlier to beat an earlier estimate of a 2.75 percent rise.
The DGBAS said the higher private consumption largely resulted from higher retail sales, including continued strong sales of mobile devices.
Taiwan's capital formation for the second quarter rose 5.42 percent from a year earlier, compared with an earlier estimate of a 3.18 percent increase, due to an increased investment in production equipment. (By Chen Cheng-wei, Jay Chen and Frances Huang)


Updated : 2021-09-29 11:00 GMT+08:00