Taiwan’s real GDP contracted by 0.41% in Q4’22 from the same period in the previous year, primarily due to a decrease in exports and manufacturing. In 2023, Taiwan’s real GDP is projected to grow by 2.12%, supported by the continuing investment in the semiconductor industry and offshore wind energy, as well as expanding airline fleets.
The tech industry in Taiwan, which is a major supplier of semiconductor chips and finished electronics to the world, is facing a slowdown in demand for PCs and smartphones, helping to lower economic growth forecasts for 2023. The country’s GDP growth forecast of 2.12% is the lowest in eight years, due to subdued demand for its key merchandise exports. The Taipei-based Market Intelligence and Consulting Institute has forecasted a decline in notebook PC shipments by 10% and a 5.9% decrease in smartphone shipments for 2023. While the finance sector has matched or exceeded the government’s GDP growth forecast, global demand for electronics is likely to remain depressed for the remainder of the year, according to analysts.
