By Fanny Liu
TAIPEI--Taiwan's economy expanded more slowly in the fourth
quarter, as falling oil prices hurt petrochemical exports, though
demand for electronics remained strong.
Taiwan's gross domestic product rose 3.17% from a year earlier
in the final quarter of 2014, the lowest rate in five quarters, and
1.17% from the previous quarter, an initial official reading showed
Friday.
Growth exceeded the government's previous estimate of 2.83% on
year, but was largely in line with the median 3.08% increase
forecast by 11 economists in a survey by The Wall Street Journal.
The economy expanded 3.63% in the third quarter of 2014.
Exports edged up 0.5% in the fourth quarter from a year earlier,
weakening from a 6.7% rise in the third quarter, as overseas sales
shrank for petrochemical products, which comprise a fifth of total
exports. Electronics exports, however, recorded double-digit growth
through the peak shipping season, as many Taiwanese manufacturers
supply components for popular gadgets such as Apple Inc.'s new
iPhones and China's Xiaomi smartphones.
The export-driven economy faces headwinds as the eurozone slows
and demand cools in China, Taiwan's biggest trading
partner--despite the recent uptick in U.S. demand. In light of weak
demand abroad, economists say Taiwan's monetary policy will likely
remain accommodative. The central bank is also likely to allow the
local currency to depreciate more against the U.S. dollar to boost
the competitiveness of its exports, they say.
An improving job market also lifted Taiwan's private consumption
by 2.33% in the fourth quarter, following a 2.92% rise in the third
quarter. The government said the gain was capped by rising costs of
eating out and a drop in sales at restaurants after an adulterated
cooking-oil scandal broke in early September.
In the fourth quarter, capital formation, which includes
government and private-sector investment in fixed assets and
changes in inventories, gained 2.19% from a year earlier, much
slower than a 7.97% rise in the third quarter.
Write to Fanny Liu at fanny, liu@wsj.com
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