Reported by Sarah Mishkin in Taipei-Taiwan’s economy shrank slightly in the second quarter, a far worse performance than expected, as falling demand dragged on exports.
The economy contracted 0.16 per cent year on year, according to figures released on Tuesday. Analysts had expected a 0.5 per cent expansion, according to a survey conducted by Bloomberg.
The disappointing data “reflect the slowdown of global demand”, the government’s statistics and budget authority said in a statement. The department also cut its growth estimate for 2012 to 2.1 per cent, from 3 per cent. Last quarter, the economy grew 0.4 per cent year on year.
Taiwan has struggled with limited success to rise above sluggish global growth. Slow sales of PCs and smartphones have been a drag on the economy, which depends on electronics and communications technology for half its exports.
