Taiwan’s economy loses momentum as anti-virus controls pinch

TAIPEI, China (AP) — Taiwan’s economic growth slowed to 7.5% over a year earlier in the latest quarter as anti-coronavirus controls depressed consumer spending and manufacturing.

Growth in the three months ending in June decelerated from the previous quarter’s 8.9%, government data showed Friday.

Measured compared with the previous quarter, growth slowed to 2% from the previous quarter’s 3%.

A resurgence of coronavirus cases prompted Taiwan’s government to tighten social distance measures for factories and retailing. Consumer spending fell 0.4% from a year earlier.

Processor chip factories, a major export industry, were hit by water shortages that forced some to reduce output. The island also suffered power shortages.

Electronics exports should support growth in the second half of the year as developed markets ease restrictions and Taiwan consumer spending improves, said Lloyd Chan of Oxford Economics in a report.

“We remain optimistic about Taiwan’s growth prospects,” Chan wrote.

Copyright © 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up