The Taiwanese economy expanded 1.78 percent year-on-year in Q4 2018, compared to an advance estimate of 1.76 percent but below an upwardly revised 2.38 percent growth in the previous period. It is the slowest expansion since Q2 2016. Gross capital formation slowed sharply (9.42% vs 17.33% in Q3), on lower investment in machinery & equipment and private consumption was barely unchanged (1.67% vs 1.69%), as weaker sales of ICT products and a slump in financial services were offset by higher spending during local elections and referendums. Also, the contribution from net trade was more negative as exports rose only 1.29% (vs 1.35% in Q3) despite imports slowed (4.29% vs 4.68% in Q3). Conversely, government spending rebounded markedly (3.55% vs -1.47%). On a seasonally adjusted quarterly basis, the economy grew 0.37 percent, after an upwardly revised 0.47 percent in Q3. For the whole 2018, the GDP advanced 2.63%, below 3.08% in 2017. For 2019, it is projected to grow by 2.27%. GDP Annual Growth Rate in Taiwan averaged 6.77 percent from 1962 until 2018, reaching an all time high of 17.06 percent in the third quarter of 1978 and a record low of -8.12 percent in the first quarter of 2009.
GDP Annual Growth Rate in Taiwan is expected to be 2.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Taiwan to stand at 2.20 in 12 months time. In the long-term, the Taiwan GDP Annual Growth Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.