Taiwan Raises 2024 GDP Growth Outlook

(RTTNews) - The Taiwanese economy is set to grow slightly faster than previously projected in 2024 on the back of a strong export outlook, according to the latest data from the Directorate-General of Budget, Accounting, and Statistics, published on Thursday.

Real gross domestic product is forecast to grow by 3.43 percent in 2024 instead of the 3.35 percent projected previously.

Real exports of goods and services are forecast to grow 5.90 percent this year, amid hopes of increasing demand for new technological applications such as AI applications, high-performance computing, and automotive electronics.

Driven by the improving labour market and the wealth effect stemming from the rising stock market, private consumption is projected to climb 2.64 percent.

At the same time, the growth rate of fixed capital formation is 1.45 percent, bolstered by ongoing investments in research and development as well as process optimisation to address the digital transition and achieve net-zero emissions. 

Taiwan's investment growth will be further fueled by the airline's fleet expansion to meet the increasing demand for overseas travel and freight, along with sustained investments in solar and offshore wind energy.

The inflation outlook for 2024 was revised up by 0.21 percentage points to 1.85 percent, reflecting rising costs for food away from home and residential rent.

Data showed that the real GDP increased 9.70 percent on a quarter-on-quarter, seasonally-adjusted annualised basis after expanding 7.87 percent in the third quarter.

On a year-on-year basis, GDP advanced 4.93 percent in the fourth quarter, following a 2.15 percent rise in the third quarter.

For the whole of 2023, the economic growth rate was 1.31 percent, compared with 2.59 percent in 2022.

Separate official data showed that Taiwan's industrial production recovered strongly by 15.98 percent annually in January versus a 3.83 percent decline in December. Meanwhile, retail sales growth eased to 0.3 percent from 1.1 percent.

The seasonally adjusted jobless rate in the country remained stable at 3.39 percent, representing 405,000 unemployed people.