Taiwan’s economy slows in fourth quarter 2014

Taipei: Taiwan´s economic growth slowed in the three months to December in 2014 due to lower-than-expected overseas demand for goods and weaker domestic spending, government estimates showed Friday.
The Taiwanese economy grew 3.17 percent in the fourth quarter year-on-year, lower than the previous three quarters but better than a forecast of 2.83 percent made in November, said the Directorate General of Budget, Accounting and Statistics.
Exports in the period rose only 0.45 percent as declining demand for gasoline, diesel and plastic products cancelled out growth in electronic goods, machinery and metals, the agency said.
Private consumption grew a lower-than-expected 2.33 percent in the last quarter, hit by several food scandals.
This was despite a string of new smartphones boosting retailers and campaign spending for Taiwan´s local elections in November, it said.
Full-year GDP growth for 2014 was estimated at 3.51 percent, higher than a November forecast of 3.43 percent, putting Taiwan on course to enjoy its best 12 months since 2011.
Last year Taiwan´s economic growth was buoyed by a steady recovery in developed countries as well as record-high exports and rising domestic consumption.
Exports rose 2.7 percent year-on-year to a record high of $313.84 billion in 2014, helped by booming demand for electronics products including Apple´s iPhone 6. A number of leading Taiwanese firms such as Foxconn and TSMC are reportedly among Apple´s suppliers.
But the strong growth weakened towards the end of the year, dipping 2.8 percent in December for the first time since the start of the year, owing to shrinking demand in most overseas markets, the government said.