Taiwan’s GDP Contracts 0.86% in Q4 2022, Weakest in 13 Years Due to Slowing Global Demand and COVID-19 Turbulence

The Taiwan Bureau of Statistics has released data that Taiwan’s gross domestic product (GDP) contracted by 0.86% in the fourth quarter of 2022 from the same period a year earlier. This compares to a 4.01% growth in the third quarter of 2022. The fourth quarter of 2022 GDP was the weakest in 13 years for Taiwan, pressured by a drop in export sales.

The decrease in GDP is primarily attributed to a slowing global demand for technology and COVID-19-related turbulence in China, Taiwan’s largest market. Taiwan’s fourth-quarter 2022 GDP numbers were worse than expected at a 1.3% growth and the worst since Taiwan’s economy shrank 1.13% in the third quarter of 2009, during the global financial crisis. Compared to Q3/2022, Taiwan’s GDP shrank 4.24% in Q4/2022.

Throughout 2022, Taiwan’s GDP grew by 2.43%, compared to 6.53% growth in 2021. The contraction in GDP in the fourth quarter of 2022 is a clear indication of the impact of the pandemic on the global economy, with Taiwan being particularly affected by the slowdown in demand for technology products.

The government has implemented measures to support the economy and industry, such as providing financial assistance to small and medium-sized enterprises, and promoting domestic consumption. The government will continue to monitor the situation and take appropriate actions to mitigate the negative impact on the economy.

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