Taiwan’s trade-dependent economy is likely to grow more slowly than previously forecast for 2023 on sluggish exports, but will pick up speed again next year, the statistics office said on Tuesday (Nov 29).

Taiwan is a key link in the global technology supply chain for companies such as Apple and Nvidia, and is home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing (TSMC).

Its economy has been weighed down by weak global demand for its high-tech products, though domestic consumption remains robust.

Gross domestic product (GDP) for 2023 is now expected to be 1.42 per cent higher than last year, the Directorate General of Budget, Accounting and Statistics said, revising downward the 1.61 per cent forecast it issued in August.

That would be well below the 2.45 per cent growth rate recorded for 2022.

The economy expanded by 2.32 per cent in the third quarter from a year earlier, unchanged from a preliminary reading.

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The statistics agency now sees 2023 exports shrinking 9.9 per cent versus last year, compared with 9.51 per cent predicted earlier.

For 2024, the agency said it saw GDP expanding 3.35 per cent compared with a prior estimate of 3.32 per cent, while exports would rise 6.33 per cent.

Taiwanese chipmaker TSMC said last month the semiconductor industry could be poised for recovery, led by demand for personal computers and smartphones, with artificial intelligence (AI) growth also increasing demand for its advanced chips and advanced packaging. REUTERS