ECONOMIC PERFORMANCE IN 2004
The strong expansion of capital formation in the private sector helped support the robust growth of Taiwan’s economy in the third quarter of 2004. Real gross domestic product (GDP) increased by 5.27%, compared with the same quarter of the previous year. Real domestic demand increased by 5.47% and contributed 4.94 percentage points to the growth of real GDP. Net exports contributed 0.33 percentage point to the change in real GDP.
After the strong recovery in the first half of 2004, the momentum of the global economy seems to slow down gradually in the second half. However, the yearly growth of the world economy is still more substantial than in 2003, and has lead to brisk increases of Taiwan’s export in 2004. Meanwhile, the steady progress in the huge new-building projects of semi-conductor and thin film transistor liquid crystal display (TFT-LCD) industries will keep the capital formation in the private sector booming. For 2004 as a whole, real GDP is projected to expand 5.93% from the previous year. Real domestic demand increased 5.66%, and contributed 5.07 percentage points to the change of real GDP. Net exports contributed 0.86 percentage points to the change in real GDP.
OUTLOOK FOR TAIWAN ECONOMY IN 2005
The rate of growth of the global economy is expected to decrease in 2005. Thus Taiwan’s export expansion will in turn also slow down. Simultaneously, the domestic sector will not grow as solid as in 2004 either, due to the high level of growth achieved in 2004 and the less-favorable global economy. The GDP is projected to increase by 4.56% in 2005. The domestic demand will increase by 3.42%, and will contribute 3.06 percentage points to the GDP growth rates. At the same time, the net export will contribute 1.50 percentage points.
BENCHMARK REVISION OF THE NATIONAL ACCOUNTS
DGBAS, the highest administration of statistics, has also released the benchmark revision of the National Accounts during 1997-2003. The rebasing National Accounts to reference year 2001 has been completed. All real terms (in constant price) are revised backwards to 1961. According to the revision, the GDP grew 3.84% on average during 1997-2002, 0.05 percentage points lower than the original growth (3.89%).
For further information:
Statistics Database:
https://www.stat.gov.tw/main.htm
DGBAS news releases on the Internet:
https://www.dgbas.gov.tw/
Jr-shiang Gau
jjsgau@dgbas.gov.tw
Tel: 886-2-23803495
Fax: 886-2-23803503
Next release – NLT Feb 25, 2005, for:
Gross Domestic Product in 2004 (Preliminary)