Taiwan's trade-reliant economy is expected to have expanded at a slower pace in the third quarter due to the island's COVID-19 outbreak, a Reuters poll showed, though supported by export growth and healthy global demand for semiconductors.
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Gross domestic product (GDP) likely expanded 4 per cent in the July-September period versus a year ago, the poll of 27 economists shows, after it grew 7.43 per cent year-on-year in the second quarter.
That would be its slowest rate of growth since logging 5.09 per cent in the fourth quarter of last year.
As a key hub in the global technology supply chain for giants such as Apple Inc, Taiwan's economy has outperformed many of its regional peers during the COVID-19 pandemic as it benefited from robust demand for its tech exports during the work-and-study-from-home trend.
But domestic consumption was hit by a rare rise in community COVID-19 transmissions starting mid-May and the imposition of strict restrictions on gatherings and other curbs. The outbreak has now ended, and the government has been issuing shopping coupons to help restore consumer confidence.
Economists' forecasts for preliminary GDP data due on Friday varied widely from growth of 2.5 per cent to as high as 6.5 per cent.
Kevin Wang, an economist at Taishin Securities Investment Advisory Co, said the drop-off in growth was because of the impact on consumption from the COVID-19 outbreak at home.