Taiwan GDP growth pace seen slowing slightly in Q2

The economic growth of Taiwan is likely to slow in the second quarter (Q2) amid trade tensions between the United States and China, according to Reuters poll.

The median forecast in a Reuters poll of 15 economists was for Q2 GDP to expand 3.00 per cent from a year earlier. Taiwan reported 3.04 per cent annual growth for the Q1.

The preliminary figures will be released along with a brief statement. Revised figures will be released about two to three weeks later, with details and forecasts.

Some economists said the underwhelming recent economic indicators such as industrial production could suggest that manufacturers are cautious about maintaining inventory during a possible trade war.

Iris Pang, Greater China economist at ING, said in a research note she had cut its full-year growth forecast for Taiwan to 2.4 per cent, from 2.6 per cent.

“While Taiwan could win some orders from the substitution of Mainland products (for example, electrical machinery), manufacturers could be hit by a fall in global demand if the trade war intensifies,” Pang added.