Bloomberg News
Date: Oct 29, 2020
By: Chris Horton and Raymond Wu, Bloomberg News

(Bloomberg) — Taiwan has so far managed to remain something of a haven from the coronavirus and the uncertainties of increasing U.S.-China competition, with its economy likely to have rebounded after a contraction earlier this year.

Gross domestic product expanded 1.1% in the third quarter from a year ago, according to the median forecast in a survey of economists. The cabinet hinted at an even better result in a statement Thursday, saying there would be “good news” for those who hope to see an expansion above 2% when it releases the data Friday.

Taiwan joins South Korea and China in quickly shaking off the Covid-19 downturn, even as many of its other trading partners are still contracting. That recovery has been underpinned by a variety of factors, including export growth, a stronger currency, the quick control of the virus, and a voucher-based domestic stimulus program.

“Whether you’re looking at foreign trade or consumption, it’s all looking quite positive,” Anita Hsu, an economist with Masterlink Securities Investment Advisory in Taipei, said in an interview Monday. “Domestic consumption appears to have picked up significantly, and the stimulus and tourism vouchers should be sufficient to offset some of the lost consumption from foreign tourists.”
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