Taiwan’s economy grew last year at its fastest pace in more than a decade, driven by strong technology exports such as semiconductors during the Covid-19 pandemic, as well as recovering consumer confidence.
For 2021, initial gross domestic product (GDP) growth was put at 6.28%, compared with 3.11% the previous year, preliminary data from the statistics agency showed on Thursday.
That was the fastest pace since an expansion of 10.25% in 2010.
GDP grew a preliminary 4.88% in the fourth quarter of 2021 from a year earlier after a rise of 3.7% in the period from July to September. That was well above the increase of 3.8% forecast in a Reuters poll.
However, it lagged behind growth of 7.43% in the second quarter and 8.92% in the first quarter.
As a key hub in the global technology supply chain for giants such as Apple, Taiwan’s economy has outperformed many regional peers during the pandemic.
Robust Tech Demand
Taiwan has benefited from robust demand for tech exports as more people turned to working and studying from home.
A global shortage of chips has also filled the order books of makers such as Taiwan Semiconductor Manufacturing Co, and driven them to expand production at home.
Taiwan’s exports rose 29.4% in 2021 to a record high, and the economy continues to benefit from strong global demand for its high-tech goods and chips.
Total fourth-quarter exports soared 26.01% on the year in US dollar terms, the agency said.
Statistics official Wu Pei-hsuan said domestic consumption had recovered in the fourth quarter after being affected by government controls to curb a short-lived domestic coronavirus outbreak that began in May.
- Reuters, with additional editing by George Russell
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