Friday, Feb 22, 2013
TAIPEI – Taiwan’s economy grew 1.26 percent in 2012, its slowest pace in three years owing to shrinking exports, the government said Friday.
The figures mark the worst performance since a 1.81 percent contraction in 2009 when the economy was buffeted by the global financial crisis, the Directorate General of Budget, Accounting and Statistics said.
It compared with a preliminary estimate of 1.25 percent made last month and 1.13 percent made in November, on better-than-expected foreign trade and domestic spending, the directorate said in a statement.
Fourth quarter growth came in at 3.72 percent, also up from January’s prediction of 3.42 percent and November’s 2.97 percent estimate.
For 2013, the agency projected growth of 3.59 percent, on the back of growing overseas demand for the island’s signature electronics and telecom products.
“It will help maintain our export momentum amid improving outlook for our major trade partners the United States, China, Japan and Southeast Asian countries,” the statement said.
Taiwan’s trade-dependent economy shrank in the second quarter of 2012 for the first time in nearly three years, while its exports shrank for six consecutive months from March to August.
The problem is Taiwan is duplicating the industries in China but it’s manpower costs is higher in Taiwan, without moving up the value chain and finding domestic demand for more income to diversify it’s income from only 2 industry, Taiwan is in a fix with very low growth rates, until they realised what the issue is, they have to learn from Hong Kong to attract mainlanders to Taiwan, find out what attract them, to create the second hottest destination for tourism to include industries from branded goods, casinoes, and all kinds of investments, will they then return to normal growth again.
– Contributed by Oogle.