Taiwan’s economy is predicted to have grown faster in the first quarter of 2024, driven by an increase in exports and strong demand for technology used in artificial intelligence applications. A Reuters poll of 18 economists revealed that Gross Domestic Product (GDP) is projected to have expanded by 5.65% compared to the same period last year, following a 4.93% increase in GDP during the fourth quarter of the previous year.
In the first quarter, exports surged by 12.9% year-on-year, a significant improvement from the 3.4% growth seen in the fourth quarter. This boost in exports was led by Taiwan’s tech-heavy industries, particularly chipmakers, who capitalized on the rising demand for AI technology. As a result, the manufacturing sector in Taiwan has seen a resurgence, leading to low unemployment rates.
Taiwan’s largest export market, China, also experienced faster-than-expected growth in the first quarter, expanding by 5.3% year-on-year. Taiwan plays a crucial role in the global technology supply chain, serving companies like Apple and Nvidia, and housing the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co.
The preliminary GDP data for Taiwan will be released with limited commentary before revised figures with more detailed analysis and future projections are released later on