Taiwan's GDP rises 6.28% in 2021
By ECCT staff writers
Based on advance estimates by the Directorate General of Budget, Accounting and Statistics (DGBAS), Taiwan’s real gross domestic product (GDP) increased by 4.88% on a year-on-year basis (y-o-y) in 4Q21 and 6.28% for the full year in 2021, the highest growth rate in 11 years.
The higher-than-expected annual growth rate was due to better-than-expected performance in 4Q21 where real exports of goods and services grew by 11.92% y-o-y, mainly driven by the strong foreign demand for manufacturing products, as well as thriving shipment services accompanied by international trade, according to a DGBAS news release. Imports also increased by 15.56% y-o-y. Meanwhile, gross capital formation, investment in machinery equipment, transportation equipment and construction grew significantly. Combining inventory changes, real gross capital formation expanded by 13.92% y-o-y. Real private final consumption grew by 1.62% y-o-y in 4Q21, a rise from the 5.6% decline in the previous quarter, mainly reflecting the restoration of retail sales and food services due to restrictions easing and government stimulus packages, according to the news release.