Financial News: Taiwan Economy Contracts 3.02% Amid Lower Investments

Taiwan Economy Contracts 3.02% Amid Lower Investments

(RTTNews) - Taiwan's economy contracted for the second straight quarter in three months ended March, largely due to weaker investments, official data showed Friday.

Gross domestic product declined at a faster pace of 3.02 percent on a year-on-year basis after falling 0.41 percent in the fourth quarter, a preliminary estimate by the Directorate General of Budget, Accounting, and Statistics revealed.

As a result, the country is now entering a technical recession in the March quarter.

Further, this represented the economy's worst performance since 2009. Economists had forecast a 1.25 percent decrease during the quarter.

On a quarter-on-quarter seasonally-adjusted annualized basis, GDP contracted notably by 6.37 percent, which was worse than the 1.46 percent decline a quarter ago.

On the expenditure side, gross capital formation fell 4.15 percent annually in the March quarter, due to lower investment in construction and transportation equipment.

At the same time, private final consumption grew 6.60 percent, and that of government consumption expenditure gained 3.78 percent. Nonetheless, both exports and imports slid by 10.86 percent and 5.14 percent, respectively.

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