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1st LD-Writethru: Taiwan's economy expands 2.06 pct in Q3

Xinhua, October 28, 2016 Adjust font size:

Taiwan's economy expanded faster than expected in the third quarter of this year as consumer spending and fixed-asset investment steadied.

The island's GDP grew at an annual rate of 2.06 percent during July-September, according to preliminary data released by the island's statistics department Friday.

That compares with a growth of 0.69 percent in the second quarter, and beats the market estimate of 1.99 percent.

The statistics authority attributed the encouraging growth to steady expansion of consumer spending and fixed-asset investment, which offset slim export growth.

Retail sales ended two consecutive months of decline to grow 1.66 percent in the third quarter as consumers cashed in on automobiles, petroleum and mobile telecommunications gadgets.

Fixed-asset investment grew 3.24 percent year on year as semiconductor producers and mobile carriers bolstered investments to cope with higher demand.

Exports rose for the first time since the first quarter of last year, though at a slim rate of 0.12 percent, as global demand for Taiwan-made electronics and machinery rebounded.

Major think tanks in Taiwan predicted the economy would fare better in the second half of the year due to a lower comparison basis and recovering demand for high-tech products.

Experts see higher possibility for annual growth to reach above one percent, hard-earned progress since the economy has posted several quarterly contractions in the past year.

Even more than one percent growth rate looks weak, experts said, warning that economic engines were not solid enough to withstand headwinds in the global economy.

They said the downside risks facing the economy including U.S. Fed's decision on rate hiking, global oil and commodity prices, lackluster global trade and slowdown of the mainland economy.

The statistics department said the number of Chinese mainland tourists declined by 28.4 percent in the three months to September from a year earlier, while tourists from other parts of the world rose only 14.84 percent.

If the number of Chinese mainland tourists declines 10 percent this year, economic output will be trimmed by 0.1 percentage points on the island, according to the island's statistics authorities. Endit