Taiwan's GDP falls 0.73% in 2Q20
By ECCT staff writers
Taiwan’s Gross Domestic Product (GDP) fell 0.73% in the second quarter of 2020 compared to the same period in 2019 owing to the impact of the coronavirus pandemic. According to an official report by Taiwan’s Directorate General of Budget, Accounting and Statistics (DGBAS) giving an advanced estimate of 2Q20 GDP, the figure for the second quarter was also 8.82% lower than the previous quarter on a seasonally-adjusted annualised basis.
It was the first time Taiwan's GDP had posted a quarterly decline since the first quarter of 2016, when GDP contracted by 0.09% from a year earlier. However, given growth in the first quarter, for the first half of 2020, Taiwan's economy grew 0.41%, a remarkable achievement compared to many countries in the world, which have seen sharp GDP contractions.
According to the DGBAS, the overall impact of the drop in trade owing to the pandemic has been partially offset by a rising demand for devices used for remote work and online learning.
Total merchandise and service exports in the second quarter fell 3.68% while imports were down 4.24%, according to DGBAS figures.
Private consumption fell 5.13% from a year earlier in the second quarter, with retail sales down 5.76%, airline revenue down 92.86% and sales generated by food and beverage vendors down 12.36%.
Bucking the downward trend, the DGBAS said, Taiwan's capital formation, including government and private investment, rose 9.56% from a year earlier, which offset weakening exports and private consumption.
In late May, the DGBAS revised its forecast for Taiwan's 2020 GDP down to 1.67% from its previous estimate of a 2.37% made in February.