Economy Grew 7.47% YoY in Q2

Covid ain’t no stopping this engine.

Investment is also up 8.58%, which means salaries should go up.

That’s amazing. I was expecting some growth, but nothing like this.

Imagine how high it would have been if the pilot cock-up hadn’t been made?

EDIT: Growth would have been very weak in Q2 2020, of course.

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Well since you get a hard on from these statistics I’ll let you know that Taiwan has overtaken Korea in nominal GDP per capita for the first time in forever.

Assuming things don’t change dramatically in the next 2 months you should see the changes reflected in the October report from IMF.

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Where did you see that?

Probably IMF website.

According to the article,

As a result, the second quarter’s private consumption fell 0.41 percent, wiping out GDP growth by 0.20 percentage points, the DGBAS said.

So if private consumption would’ve remained the same if that pilot thing didn’t happen, then it would be 7.67%.

The 7.47% change is over its absolute value in Q2 2020, not its growth rate.

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It’s not on IMF website.

Economy grows 7%, I grow 7%. :joy: :joy: :joy:

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Oh I get it, it’s very clever. How’s that working out for you?

I could tell by the amount of traffic and trucks on the highways, no let up. Also large number of new factories around the island .

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My own back of the envelope calculations lol. Just take IMF data, multiply by KRW and NTD changes in regards to USD as well as qoq growth. Most of it comes down to KRW getting hammered recently.

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Yeah I was just about to do that then I said not worth it.

I guess that is a very likely prospect.

I don’t see it.

Just a heads up, Q3 is expected to be lower.

Pity the growth in one sector is not stimulating the overall economy:

Yep there’s a MASSIVE boom in Taiwan’s electronic sector right now. I’ve been reading mini LEDs demand will go 10x next year, you’ve got IOTz you’ve got AR and VR and of course semiconductor chip demand.

Hsinchu’s malls are a bit busier but it’s laughingly not Las Vegas even though they are printing money. Property prices going up in some places but didn’t see a lot of crazy spending. Maybe called out in the article.

Taiwan is very much at full employment , minimum wage should be raised more quickly.

Bs coverage from Nikkei again. The same tired talking points. While I do agree that minimum wage needs to increase in Taiwan, the article simply spins and picks and chooses facts to somehow arrive at its desired conclusions. Some major major problems with that article.

1- Numbeo is dumb. It weights milk and other groceries very heavily which simply destroys Taiwan. Yet compred every other category and Taiwan is almost half as expensive as Germany (restaurant meals, rent, utilities, transport)

2- Yes wages were stagnant. They are not anymore though. Why keep repeating that? It’s been growing steadily since 2009 IIRC.

3- Wages increased while the currency got stronger, nee to take that into account as well.

4- Consumer spending was low because we had the COVID lockdowns. I would be worried if it doesn’t pick up this quarter though. But if other countries are any indication, consumption will be back with a revenge.

Edit: The likes of Nikkei and ING keep repeating these things about Taiwan economy. I have been following Taiwan economy for 4 years now and literally only once their predictions were above the real outcome. Every single other time in that time frame they always say things like “despite the surprise increase in exports, we believe demand will soften in the next quarter so we predict lower NTD and GDP growth to soften”.

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One of the reasons for the somewhat lacklustre economy is obviously the dearth of immigration and very low birth rate. I checked the immigration rates and they are super low right now.

You see new houses being built but they are mostly quite expensive housing in the big cities ,.Many investor type homes. Many are empty… When you go to rent a house here there’s never any competition really (a good thing).

I believe the population structure is the main reason we don’t see a boom already here along with some issues related to covid. Taiwan shoots itself in the foot as they have been locking up migrant workers stopping them spending and then they don’t allow them to move here and settle here which obviously reduces local economic demand. In many western countries or even in places like Singapore and HK demand is really.boosted by immigrants.

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You’d think they’d realize that opening up immigration, paying them local wages and offering them the same social services would cost almost nothing but offer huge returns to small businesses and result in meaningful population growth.