Taiwan’s economy grew 2.41 percent in the second quarter of the year, 0.63 of a percentage point above the May forecast, according to the Directorate-General of Budget, Accounting and Statistics.
The strong showing is largely due to robust domestic investment and better-than-expected exports, the Cabinet said, adding that this reflects the effectiveness of related government policies and regulatory amendments in addressing challenges at home and abroad.
According to the Cabinet, ongoing trade friction between the U.S. and China has prompted a large number of Taiwan-based businesses operating on the other side of the strait to move production home or expand local manufacturing activities.
More than 100 firms have made homebound investment commitments totaling NT$504.7 billion (US$16.07 billion) during the first seven months of the year, with a further 50 cases under review. The Cabinet said both figures exceed annual targets and augur well for the future.
The additional business initiatives are expected to create 43,900 new job opportunities in sectors spanning bicycles, information communication technology, network equipment, and semiconductor components and parts, the Cabinet added.
On the foreign trade front, exports grew 0.5 percent year on year in June to reverse a seven-month downward trend. Shipments to the U.S. were a high point, gaining 17.38 percent during the first half of the year to a record US$22.04 billion.
At the same time, imports of capital equipment surged to an all-time high of 16 percent and remain on track to post a world-leading growth rate of 21 percent for the year. According to global industry association Semiconductor Equipment and Materials International, this should see Taiwan edge out South Korea to become the biggest market for related products and services in the world.
The Cabinet said it will continue implementing programs spurring domestic consumption and homebound investment so as to maintain the growth momentum of Taiwan’s economy going forward. (SFC-E)
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