Taiwan Q3 Growth at 3.33% "Successful Rebound Amid Strong Exports"

[Asia Economy Reporter Bu Aeri] Taiwan's third-quarter Gross Domestic Product (GDP) increased by 3.33% compared to the previous year.

This is 1.32 percentage points higher than the 2.01% forecast announced last August, reported Taiwan Central News Agency (CNA) on the 30th.

Taiwan's economy rebounded after growing 1.59% in the first quarter and then recording a nearly 11-year worst contraction of 0.58% in the second quarter.

This is the highest growth rate in the recent nine quarters since the 3.4% growth recorded in the second quarter of 2018.

Taiwan authorities analyzed that strong growth was achieved thanks to exports performing better than expected despite the global impact of the novel coronavirus disease (COVID-19).

According to the authorities, Chinese telecommunications equipment company Huawei, which faced supply chain disruptions for semiconductor components due to U.S. sanctions starting last month, purchased inventory in advance from Taiwan, and exports of electronic communication products in the third quarter increased by more than 20% compared to the same period last year.

Taiwan authorities forecast that the overall economic growth rate for this year will reach 1.9%, higher than the 1.56% estimate made last August.

Bloomberg News analyzed that Taiwan's early control of COVID-19, benefits from U.S.-China conflicts, exchange rates, and economic stimulus measures played positive roles.