Taiwan Economy Picked Up Speed in 3rd Quarter on Tech Upswing

By Chester Yung Features Dow Jones Newswires

Taiwan's economy accelerated in the July-September period for the first time in three quarters, official data showed Tuesday.

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The growth was powered by continued strength in the island's technology exports against the backdrop of the latest smartphone-release cycle.

Gross domestic product expanded by 3.11% from a year ago, accelerating from a 2.13% increase in the second quarter. The result came in much stronger than economists' forecast of 2.1% growth in a Wall Street Journal survey.

Exports continued to drive much of the island's growth, contributing 7.02 percentage points to the expansion of GDP. Domestic consumption, however, continued to show weakness--raising some questions about companies' confidence in the sustainability of the economy's growth rate.

The month-over-month data--a better gauge of more-recent developments in the economy--suggested the acceleration in growth was even more pronounced. GDP expanded 7.45% on an annualized sequential basis in the third quarter, compared with 0.47% in the second.

Economists, however, tend to focus more on the island's year-over-year figures because of the volatility of the sequential data and potential distortions in seasonal adjustment.

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Write to Chester Yung at chester.yung@wsj.com

(END) Dow Jones Newswires

October 31, 2017 04:52 ET (08:52 GMT)