Taiwan’s economy is expected to have grown faster in the first quarter, according to a Reuters poll. This growth is driven by an increase in exports, particularly in the technology sector. Economists predict that Gross Domestic Product (GDP) likely expanded by 5.65% year-on-year during January-March. This growth is higher compared to the 4.93% year-on-year growth in the fourth quarter of 2023.

Taiwan’s tech-heavy exporters, particularly chipmakers, benefitted from the demand for artificial intelligence (AI) technology. The growth in exports in the first quarter was notable, with a 12.9% year-on-year increase compared to the 3.4% growth in the previous quarter. Analysts suggest that the manufacturing sector in Taiwan is regaining strength due to strong export performance and low unemployment rates, contributing to a positive economic outlook.

The government’s statistics bureau raised its forecast for full-year 2024 growth to 3.43% from a previous prediction of 3.35%. Last year, Taiwan’s economy grew by only 1.31%, which was the slowest pace in 14 years.

The robust growth in China’s economy also played a role in supporting Taiwan’s economic performance as it is Taiwan’s largest export market.

Taiwan plays a crucial role in the global technology supply chain and caters to companies like Apple and Nvidia as well as hosts significant firms like Taiwan Semiconductor Manufacturing Co.

Preliminary GDP data for Taiwan will be released soon, providing insights into the economic performance of Taiwan during Q1 with more detailed figures and forecasts to follow in the coming weeks.

Overall, these factors suggest that Taiwan’s trade-dependent economy is rebounding stronger than expected due to an increase in exports driven by demand for AI technology and other factors such as low unemployment rates and strong export performance from its tech-heavy exporters including chipmakers.