News
4Q22 GDP contracts 0.86%
By ECCT staff writers
Taiwan’s Gross Domestic Product (GDP) in the fourth quarter of 2022 (4Q22) fell by 0.86% compared to the same quarter in 2021, according to a preliminary (“advanced estimate”) by the Directorate General of Budget Accounting and Statistics (DGBAS). According to an official DGBAS news release, while investments and consumption continued to rise in the quarter, growth was dragged down by a drop in exports.
According to the news release, real private final consumption grew by 2.89% year-on-year in 4Q22, primarily due to a recovery in consumption such as dining out, recreation and transportation, which was partly offset by the decrease in financial services. In terms of gross capital formation, investment in machinery equipment and intellectual property products rose continuously. However, investment in transportation equipment fell. Combining inventory changes, real gross capital formation expanded by 0.03% yoy in the quarter. Meanwhile real exports of goods and services fell by 5.09% yoy, dragged down by weakening global demand and inventory adjustments. Imports also dropped by 1.61% yoy in the quarter.
The 4Q22 GDP contraction is the first in 26 quarters and dragged down Taiwan’s overall growth for the full year in 2022 to 2.43% (according to the advanced estimate), which was below the government’s previous forecast of 3.06%. According to the DGBAS’s preliminary estimate breakdown, for 2022 as a whole, exports rose 1.71%, imports increased by 2.3%, and domestic demand expanded by 3.62% (on increases in private consumption, government consumption and gross capital formation of 3.36%, 2.69% and 4.52%, respectively).
