By Yifan Wang


Taiwan's economy shrank 0.86% in the final quarter of 2022, as weakening global economies weighed on overseas demand and hurt the manufacturing hub's export momentum.

The decline, shown in official advance data released on Wednesday, marked the island's first quarterly downturn in years, and significantly weakened from a 4.01% rise in the previous quarter, when a reopening-triggered consumption jump supported economic improvement.

On a seasonally adjusted basis, the economy shrank 1.08% in the October-December period from the previous quarter, the data showed.

The fourth-quarter figure missed a forecast of a 1.3% rise, according to five economists polled by The Wall Street Journal.

The latest data meant Taiwan's economy grew 2.43% for 2022, the slowest pace since 2016, according to official data.

For 2023, the government forecasts a 2.75% rise in gross domestic product.

"The pressure of inflation and interest rate increases continues to suppress global terminal demand," while "the deterioration of the pandemic situation in mainland China interfered with consumption and production activities," the government said, noting "weakening external demand."


Write to Yifan Wang at yifan.wang@wsj.com


(END) Dow Jones Newswires

01-18-23 0251ET