News

3Q21 GDP higher than expected

29 October, 2021

By ECCT staff writers

 

The Directorate General of Budget, Accounting and Statistics (DGBAS) expects Taiwan’s 2021 Gross Domestic Product (GDP) to rise by 6.01% year-on-year. This follows higher than expected GDP growth in the third quarter of 2021 of 3.8% on the back of sharply rising trade and investment.

 

According to an advanced estimate by the DGBAS, real gross capital formation expanded by 27.97% in the third quarter as Taiwan's capital equipment imports rose by 41.24% year-on-year (yoy), of which 58.9% alone consisted of semiconductor equipment.

 

Meanwhile, real exports of goods and services grew by 14.05% yoy, mainly driven by the strong foreign demand for electronic parts and ICT products, as well as the significantly growth of traditional products. Imports also increased by 19.37% yoy.

 

However, the gains in investment and trade were partially offset by a decline in private consumption. According to the DGBAS, real private final consumption fell by 5.49% (yoy) in 3Q21 mainly reflecting the expenditure slump caused by pandemic restrictions, and the high base effect caused by government stimulus packages in the same quarter of 2020.

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