Taiwan’s economy declines in Q1

The disagreement between China and Taiwan continues to affect the latter’s economy, especially with persistent threats to Beijing, which has emerged in economic growth.

Taiwan’s economy, which relies strongly on exports, slid into recession during the first quarter of this year, according to preliminary data released by the country’s General Authority for Budget, Accounting and Statistics.

It said the country’s economy likely contracted by an estimated 3.02% year-on-year, from January to March 2023.

Last quarter, Taiwan’s GDP contracted 0.41%.

Data show that despite Taiwan’s resumption of travel and international business following the coronavirus pandemic, it continues to suffer from a decline in demand for technological products, in the face of global economic crises.

The contraction in the first quarter of the year was about double as early as expected, with Taiwan’s economy likely to contract by 1.20 to 1.25 percent.

The Statistics Office said the island’s exports were severely affected by pressure from global inflation, high interest rates and weak demand in general.

The data showed that the country’s exports of goods and services had shrunk by 10.86%.

The government has previously said it expects the country’s economy to grow throughout 2023 by 2.12 percent, the lowest in nearly 8 years, and the expected 2.45 percent lower than the 2022 growth rate.