⏳ Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Advanced Taiwan GDP Backs PMI Signal Of Faster Q4 Expansion

Published 07/02/2018, 07:04
Updated 05/03/2021, 15:50
JP225
-
  • GDP rises by a stronger-than-expected 3.28% in Q4
  • 2017 growth at 2.84%, highest since 2014
  • Exports remain key driver of economic activity
  • Official data showed the Taiwanese economy growing faster than expected in the final quarter of 2017. However, the better performance had been signalled well in advance by PMI survey data.

    The advance estimate of fourth-quarter GDP growth came in at an annual rate of 3.28%, which far exceeded market expectations of 2.5%, but was in line with the PMI survey data.

    Taiwan PMI and economic growth

    The Nikkei Taiwan Manufacturing PMI, compiled by IHS Markit, averaged 55.5 in the three months to December, up from 54.0 in the third quarter, representing the best quarterly expansion since 2014.

    Exports have been a key driver of improved economic performance. The PMI’s gauge of export orders signalled the strongest upturn for over three years in the fourth quarter, a message soon followed by the official data which indicated greater export strength than forecast. Exports contributed three percentage points to GDP in the fourth quarter. Data from the Ministry of Economic Affairs showed exports rising 17.5% in December, up from 11.6% in November, representing the strongest annual rate of increase since February, corroborating with PMI surveys.

    Taiwan PMI and export orders

    However, signs of weaker growth in private investment drew some concerns that the tech boom that has also been helping drive business activity higher in Taiwan could be losing momentum.

    With the Taiwanese economy ending 2017 on a stronger footing, attention now shifts to whether the robust growth momentum can be sustained through 2018. Taiwan’s manufacturing sector looks well placed to continue its current strong run of growth after a solid start to the year, according to January survey data.

    Disclaimer: The intellectual property rights to these data provided herein are owned by or licensed to Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon.

    In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are either registered trademarks of Markit Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.