Taiwan expects fastest growth in a decade this year thanks to export boom

TAIPEI, Aug. 13 (Reuters) – Taiwan’s economy will experience the fastest growth in more than a decade in 2021, the statistics bureau said on Friday, raising its prospects for a strong rebound in exports from the island of heavyweights of technology.

Gross domestic product (GDP) is expected to grow 5.88 percent this year, the fastest pace since it grew 10.25 percent in 2010, the Directorate-General for Budget, Accounting and Statistics said. , and up from a growth forecast of 5.46% made in June.

Giving its first forecast for 2022, the bureau said it saw GDP growth reach a more modest rate of 3.69% next year.

The revision came as the statistics bureau increased its export growth forecast for this year, with global demand for the island’s tech products being supported by a work-from-home boom during the COVID-19 pandemic.

Taiwan’s exports are a proxy for demand from global tech giants such as Apple Inc (AAPL.O), as the island is a major producer of semiconductors, a global shortage of which has rocked companies like the automakers and boosted the profits of Taiwanese companies.

The statistical agency predicted that exports in 2021 would increase by 28.15% compared to last year, against a previous forecast of 20.4%.

For next year, he said he saw exports increase 5.22% year-on-year.

In the second quarter, GDP grew by a revised rate of 7.43% from the previous year, down slightly from a preliminary reading of 7.47%, the agency added, and slowing by compared to 8.92% growth in the first quarter as a sudden spike in domestic COVID-19. cases that started in May weighed on consumption.

The outbreak has since been contained and restrictions, including on personal gatherings and dining out, were relaxed last month.

Reporting by Emily Chan and Ben Blanchard; Editing by Ana Nicolaci da Costa

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