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The expansion of Taiwan’s growth during the second quarter of the year based on exports
The Taiwan’s economy has witnessed unexpected high growth levels during the second quarter of this year, after Taiwan’s exports surpassed the global financial crisis benefiting from the increase on demand from the Chinese economy and the whole Asian region. This shows the degree of flexibility in the Taiwan’s economy and it’s position standing up to the global market risk and increased expectation that the central bank will raise interest rates.
Data concerning the Taiwan’s economy released today noted the economic expansion during the second quarter, where the GDP index has recorded a growth of 12.53% compared to the expected growth of 10.15%, where as the previous reading showed a growth of 13.27% and this reading has been modified to 13.71%.
The first factor behind the growth in Taiwan was the increase of exports, although there was a weakness in the level of demand from the American and Chinese economy lately.
It was released besides today’s report that expectations points out to that the Taiwanese economy is on its way to record a growth of 8.24% during 2010 and a growth of 4.64% during the next year. It should be noted that Taiwan has been a victim of the economic recession during 2009, but it managed to record a fast growing pace since 1978 during the first quarter of this year.
The stable level of exports expansion points to the flexibility enjoyed by the Asian economies especially when it comes to facing the global financial crisis, Taiwan has joined Malaysia that has announced an expansion in growth beside Hong Kong that might exceed economists’ expectations.
Taiwan’s exports to china and Hong Kong represent 40% of the total Taiwan’s exports which increased by 3.8% during the month of July. Expectations points out that the total export level will increase by 33.2% during this year, which is higher previous expectations which noted an increase of 24.5%
The stable economic conditions in Taiwan encouraged the Taiwan’s central bank to take an unexpected decision during June’s meeting to increase the interest rates to 1.375% after it was 1.250%. On the other hand fears of increased inflation rates could persuade the central bank to keep sticking to the policy of increasing interest rates, especially that consumer prices has increased by 1.31% during the month of July, for the seventh consecutive month.
Published on Fri, Aug 20 2010, 06:24 GMT