Taiwanese economy likely to expand strongly in 2018

Taiwanese economy is likely to grow 2.3 percent this year on a whole, following the much stronger-than-expected economic growth in the first half of 2018, said ANZ in a research report. Net exports contributed the most to the growth, adding 1.5 percentage points to the economic growth in the second quarter. Nevertheless, the nation’s strong export performance in the first half was partially because of front-loading activities amidst uncertainty surrounding China-U.S. trade tensions.

Meanwhile, private consumption rose at a slower rate in the second quarter at 2.65 percent, as compared with 2.73 percent in the first quarter. Investment shrank further by 2.35 percent year-on-year in the second quarter from the first quarter.

“Unless there are meaningful policy changes to boost domestic demand, the anaemic momentum will continue in H2”, added ANZ.