Taiwan's GDP hits 14-year low and country enters recession

Information released this Friday (28), shows that Taiwan's Gross Domestic Product (GDP) for the first quarter of 2023 was the lowest in 14 years, which made the country enter into recession. To give you an idea, the Taiwanese GDP reached -3.02% from January to March this year.

According to explanations given by the authorities that take care of the Asian country's economy, the drop in revenue was provoked by the decrease in exports of technological products, which are the flagship of the productive sector of Taiwan.

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Economist Wu Pei-hsuan, who is a member of Taiwan's General Directorate of Budget, Accounting and Statistics, confirmed told Reuters reporters that this recession is the lowest since the global economic crisis that hit 2008-2009.

“First quarter GDP was the worst since the financial crisis,” he said. “This quarter's external demand was weak, but private consumption was strong,” said Pei-hsuan, predicting that, despite the weak first quarter, the growth target of just over 2% set for 2023 will be achieved.

Result of an old trend

The slowdown observed now in the Taiwanese economy did not surprise economists and authorities in the country. Estimatively, exports have been falling year after year, when observing the first quarter of the last seven years.

Taiwanese Economy Minister Wang Mei-hua, who also spoke to Reuters, said that the country's high interest and tax rates had contributed to this scenario. In addition, it is noted, according to him, that Taiwanese technology companies have full stocks, which is a clear sign of weakness in sales.

In contrast to the recession seen in Taiwan, the economy of China, which is the country's largest import partner, grew by 4.5% in the first quarter of 2023.

For this year, Taiwanese GDP is expected to reach 2.75% growth, demonstrating a recovery trend, after having plummeted from 6.53% seen in 2021 to 2.45% in 2022.

Graduated in History and Human Resources Technology. Passionate about writing, today he lives the dream of acting professionally as a Content Writer for the Web, writing articles in different niches and different formats.

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