Taiwan seen slipping into recession in Q1- Reuters poll
Reuters
Published Apr 26, 2023 12:40AM ET
Updated Apr 26, 2023 12:56AM ET
TAIPEI (Reuters) - Taiwan's export-dependent economy likely slipped into a recession in the first quarter, a Reuters poll showed on Wednesday, weighed down by sluggish demand for technology products amid global economic woes.
Gross domestic product (GDP) likely fell 1.25% in the January-March period versus a year earlier, the poll of 24 economists showed. The GDP had contracted 0.41% year-on-year in the fourth quarter.
The economists' forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of
0.2%.
Exports slid annually for a seventh consecutive month in March, with a prognosis from the government that the downturn may continue until at least the fourth quarter.
"Semiconductor exports are facing a severe downturn due to the ending of the pandemic-related demand, a rise in interest rates, and escalation of U.S.-China tech tensions," according to a DBS research report.
The government has said it expects full-year 2023 growth of 2.12%, its slowest pace in nearly eight years and lower than the 2.45% growth for 2022.
Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc (NASDAQ:AAPL), and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC).
Taiwan's preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts.
(Poll compiled by Anant Chandak, Madhumita Gokhale and Carol Lee; Reporting by Faith Hung; Editing by Ben Blanchard and Uttaresh Venkateshwaran)
Get The News You Want
Written By: Reuters
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.