Taiwan's industrial production increased 5.99 percent year-on-year in December 2019, following a downwardly revised 1.79 percent rise in the previous month. It was the highest annual gain in industrial activity since October 2018, as manufacturing production advanced faster (6.37 percent vs 1.91 percent in November). Within manufacturing, output accelerated for rubber products (9.56 percent vs 5.04 percent); motor vehicles & parts (15.71 percent vs 5.40 percent) food and prepared animal feeds (3.6 percent vs 2.84 percent) and tobacco products (14.83 percent vs 4.51 percent). In addition, production of electricity and gas supply rebounded (1.01 percent vs -0.51 percent) while that of water supply slowed (2.74 percent vs 5.95 percent). On the other hand, mining & quarrying production declined (-5.14 percent vs 0.44 percent). On a seasonally adjusted monthly basis, industrial production went up 1.35 percent, up from a 2.35 percent increase in November. Industrial Production in Taiwan averaged 4.78 percent from 1997 until 2019, reaching an all time high of 75.71 percent in January of 2010 and a record low of -43.30 percent in January of 2009.
Industrial Production in Taiwan is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production in Taiwan to stand at 1.50 in 12 months time. In the long-term, the Taiwan Industrial Production is projected to trend around 2.00 percent in 2020, according to our econometric models.