The economy of Taiwan expanded at a slower pace than what the analysts predicted in the 1st quarter of the current year, mainly because of the faltering global recovery, which is hurting the exports big time in the country. Incidentally, this is increasing the pressure on the Central Bank of the country for extending the interest rate pause in an attempt to aid the growth.
The Gross Domestic Product of the country has increased by 1.54% in the 1st 3 months through March, if compared to the values of a year earlier. In the last quarter of 2012, the Gross Domestic Product of Taiwan increased by 3.72%. The recent Gross Domestic Product result was published by the statistics bureau in a preliminary report. The gain was way below than the expected 3.1% set by the analysts.
The growth slowdown in Taiwan adds to signals that the global economy is sort of restraining after US and China expanded less than what the analysts estimated in the last quarter. The export orders of Taiwan and the industrial output as well went down unexpectedly. On the other hand, the South Korean and Japanese production missed the forecasts, mainly because of faltering demand which is limiting the recovery in the Asian region.
According to the Senior Economist of Australia and New Zealand Banking Group Ltd., Raymond Yeung, the GDP of Taiwan is a reflection of a sluggish global recovery and the decline in the global demand, especially for China. Yeung added further that the data suggests that the monetary policy will be similar, unless there is noteworthy contraction of the regional economies from the unforeseeable risks.
The benchmark gauge of Taiwan, the Taiex stock gauge has gained around 0.8% on today. On the other hand, the Taiwan Dollar has jumped up by 0.3% and it is currently priced at NT$29.464 against USD, as far as the data released by the Taipei Forex Inc. is concerned. The Taiwan Dollar has jumped up by 1% in 2013. In an attempt to bolster the economy of Taiwan, President Ma Ying-jeou has sought closer investment and trade ties with China. Apart from that, the President is also trying to come up with other necessary amendments for improving the sluggish economic performance of this Asian country. Many economists feel that steps are not good enough, however, some improvements are expected soon.