Taiwan records second straight GDP contraction, biggest since 2009

Taiwan’s economy shrank for a second straight quarter at the start of 2023, the government said Friday -- its biggest quar-terly contraction since the 2009 global financial crisis.

Gross domestic product in the first quarter plummeted by 3.02 per cent year-on-year, according to preliminary figures re-leased by the Directorate-General of Budget, Accounting and Statistics.

The statistics bureau has projected GDP will grow by 2.12 per cent in 2023, revising the estimate down 0.63 per cent from an earlier forecast.

“Real exports of goods and services dropped by 10.86 per cent (yoy), mainly caused by the weak global demand and inven-tory adjustments. Imports also fell by 4.17 per cent,” the statistics bureau said.

Friday’s numbers represented the second straight quarterly contraction after the government reported a decline for the last stretch of 2022 -- the first drop since the start of 2016. Last year’s slowdown was brought on largely by a then-worsening pandemic situation in China, Taiwan’s largest trade partner.