Q1 2018 ECONOMIC REPORT
TAIWAN ECONOMY: 2018 Q1 UPDATE
Taiwan’s GDP grew by 3.02% year-on-year (yoy) in Q1 driven by the external demand for semiconductor products and robust private consumption. Taiwan’s Directorate-General of Budget, Accounting and Statistics raised its economic 2018 growth forecast to 2.6% based on favourable international economic conditions.
Taiwanese hi-tech firms continued to benefit from their centrality to the Apple supply chain. However Q1 saw a clear divergence between the revenue growth and share price appreciation that Apple experienced than that of its key Taiwanese supply chain partners.
In April, Taiwan’s Bureau of Foreign Trade followed the US in applying export controls on Chinese Smartphone maker ZTE. Two of the most prominent Taiwanese firms, Nanya Technology Corporation and MediaTek, were able to obtain a special exemption from these controls, enabling them to continue to conduct business as usual.
To address the issue of Taiwan’s increasingly ageing population, Premier William Lai introduced new measures to prevent a predicted decline in Taiwan’s 23 million population from 2025. These include steps to increase immigration and to support Taiwan’s declining birth rate with additional support to help with childcare costs.