Taiwan's GDP seen to jump to 3.3% next year

Will China's slowdown still drag its growth?

According to DBS, Taiwan's GDP growth is forecasted to rise to 3.3% in 2014.

Here's more:

The preliminary estimate of 3Q GDP will be released tomorrow morning. Growth is expected to remain stable at 2.5% YoY (3% QoQ saar).

Based on the monthly indicators available, exports and equipment investment remained weak in 3Q, while consumption and construction investment were strong to offset, thanks to abundant domestic liquidity, stable financial markets and a buoyant property market.

By industry, the manufacturing sector faced the headwinds of soft external demand. On the other hand, the services sector has continued to benefit from closer trade ties with mainland China.

Tourism revenues and job creations in transport, accommodation and food services sectors remained strong in 3Q.

GDP growth in the first three quarters of this year should have averaged 2% YoY, higher than 1.3% in 2012, but lower than the long-term trend of 4%. Undeniably, China’s economic slowdown this year has hit Taiwan’s exports seriously, an important growth engine for the economy.

The impact of the US’s QE tapering talk on Taiwan’s financial markets and domestic demand has been relatively muted, because the economy has a very strong external position and low reliance on foreign financing.

Thankfully, the Chinese economy has showed some signs of a bottoming-out in recent months. Taiwan’s export orders also rebounded on the MoM basis for two consecutive months in August and September. A mild, export-led recovery is expected in the next couple of quarters.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia