Taiwan’s Q2 GDP growth slows

Taiwan’s economy grew at a slower pace in the second quarter as a sudden spike in domestic COVID-19 cases weighed on consumption, though the island’s hi-tech exports remained strong as the global “work from home” boom shows no sign of easing.

Gross domestic product (GDP) grew 7.47 per cent in April-June from a year earlier, preliminary data from the statistics agency showed on Friday.

The reading was well above the 6.05 per cent increase forecast in a Reuters poll, but down from the first quarter’s 8.92 per cent rise.

Compared with the first quarter, the seasonally adjusted annual rate of growth declined 7.86 per cent in the second quarter, compared to a 12.93 per cent gain in the first quarter.

The government attributed the slower headline growth rate to a drop on consumption after it imposed curbs on personal gatherings, closed entertainment venues and restricted restaurant operations to contain a sudden surge in Covid-19 cases. The outbreak has since been contained and restrictions were eased this week.

“Growth was partially offset by consumption, which was hit by the local epidemic,” the statistics agency said in a statement, pointing to a 0.55 per cent yearly decline in domestic consumption.