Taiwan seen slipping into recession in Q1- Reuters poll

TAIPEI (Reuters) – Taiwan’s export-dependent economy likely slipped into a recession in the first quarter, a Reuters poll showed on Wednesday, weighed down by sluggish demand for technology products amid global economic woes.

Gross domestic product (GDP) likely fell 1.25% in the January-March period versus a year earlier, the poll of 24 economists showed. The GDP had contracted 0.41% year-on-year in the fourth quarter.

The economists’ forecasts for preliminary GDP data due on Friday varied widely from a contraction of 2.9% to growth of

0.2%.

Exports slid annually for a seventh consecutive month in March, with a prognosis from the government that the downturn may continue until at least the fourth quarter.

“Semiconductor exports are facing a severe downturn due to the ending of the pandemic-related demand, a rise in interest rates, and escalation of U.S.-China tech tensions,” according to a DBS research report.

The government has said it expects full-year 2023 growth of 2.12%, its slowest pace in nearly eight years and lower than the 2.45% growth for 2022.

Taiwan is a key hub in the global technology supply chain for giants such as Apple Inc (NASDAQ:), and home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Taiwan’s preliminary figures will be released in a statement with minimal commentary. Revised figures will be released a few weeks later, with more details and forward-looking forecasts.

(Poll compiled by Anant Chandak, Madhumita Gokhale and Carol Lee; Reporting by Faith Hung; Editing by Ben Blanchard and Uttaresh Venkateshwaran)

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