POLL-Taiwan Q3 GDP growth to hold steady pace on tech demand


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For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWGDPP%3DECI

Preliminary Q3 GDP seen at 2.5% y/y (prior qtr 2.4%)

Data due Thursday, Oct. 31, 4:00 p.m. (0800 GMT)

TAIPEI, Oct 29 (Reuters) - Taiwan's economic growth likely maintained a steady pace in the third quarter, as factories benefitted from global demand for tech products ahead of the year-end peak season in spite of trade risks, a Reuters poll showed.

The economy has been hit by a bruising trade war between China and the United States, its two largest trading partners, but demand for high-end smartphones and returning production from Taiwan manufacturers to the island have softened the blow.

Gross domestic product probably expanded 2.5% in July-September compared with a year earlier, the poll of 16 economists predicted, up from 2.4% in the second quarter.

Preliminary third quarter figures will be released on Thursday. Revised figures will be published about three weeks later, with details and forecasts.

Bucking a regional trend of growth downgrades, Taiwan raised its 2019 economic growth forecast in August. The outlook was boosted by rebounding demand for tech gadgets as well as more factories moving production to the island from China to avoid higher tariffs amid the prolonged Sino-U.S. trade war.

Taiwan's export orders, a leading indicator of actual exports in coming months, fell for the 11th successive month in September but at a slower pace. The government expects improved demand for electronics ahead of the peak holiday season when vendors are set to launch products.

Rising demand for new technologies including fifth-generation (5G) telecommunication technology and artificial intelligence have boosted profits for Taiwan's manufacturers, a key part of the global technology industry.

Taiwan Semiconductor Manufacturing Co Ltd TSM.N2330.TW, the world's top contract chipmaker, forecast a nearly 10% rise in fourth-quarter revenue on strong demand for 5G chips and new high-end smartphones.

(Poll compiled by Carol Lee; Reporting by Yimou Lee; Editing by Jacqueline Wong)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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