2014.07.3022:46:00UTC+00Taiwan GDP Growth Accelerates In Q2; Exceeds Expectations

Taiwan's economic growth accelerated more than expected in the second quarter, fueled by growth in private consumption and exports, an advance estimate released by the Directorate-General of Budget, Accounting and Statistics showed Thursday.

Gross domestic product increased by an unadjusted 3.84 percent year-over-year in the second quarter following the 2.79 percent rise in the first quarter. This exceeded the consensus estimate for a 3.2 percent growth.

On the expenditure side, exports of goods and services increased 4.45 percent in the second quarter compared with the 3.89 percent rise in the previous quarter. This contributed 3.39 percentage points to the rise in GDP. Imports also rose at an accelerated pace.

Domestic demand grew 3.29 percent, faster than the 1.63 percent increase in the previous quarter, contributing 2.64 percentage points to the overall growth. Private consumption increased in the second quarter at a faster rate.

Government consumption and gross capital formation recovered in the second quarter.

On the production side, production in the manufacturing sector grew the most, by 6.97 percent in the second quarter following the 3.42 percent rise in the previous quarter. This contributed 2.18 percentage points to the growth in GDP.