Taiwan Q3 Growth Highest in 2 Years

Taiwan’s economy grew 3.1% in the July-September period to a ten-quarter high thanks to robust overseas demand for consumer electronics products, the government said Friday.

Traditionally an export-driven technology hub, Taiwan is home to industry giants such as Foxconn and Taiwan Semiconductor Manufacturing Company—key suppliers for Apple’s iPhones, AFP reported.

Third-quarter growth was the highest since 3.99% in the 2015 first quarter, boosted by a 17.49% increase in exports, of which 14.99% was from electronic components, it said.

The island benefitted from global economic recovery and growing peak-season shipments for consumer electronic products in this period, said the directorate general of budget, accounting and statistics.

“Export growth was impressive in the third quarter to a record amount and was better than our expectations. Private consumption was also boosted by travelling and new car purchases,” said Yeh Maan-tzwu, an official at the agency.

Due to improving global outlook and strong trade, the agency also raised its fourth quarter forecast to 2.3% year-on-year, and 2017 full-year growth to 2.58%, the highest since 2014’s 4.02%.

It estimated the economy would grow 2.29% in 2018—despite major government infrastructure projects planned to start next year—due to a slowing in the upturn in export.

However, production of computer, optoelectronics devices and other electronics fell 2.03% from a year earlier in October largely because of rising competition in the global market, which was saturated with new products, the Taiwan Ministry of Economic Affairs said.