As the world returns to a new normal, Asian economies have bounced back in Q3 2022, notably Vietnam and Taiwan leading GDP growth. 

Although some countries in Asia were slower to loosen their Covid-19 restrictions, economies are bouncing back with substantial gross domestic product (GDP) growth rates in Q3 2022. Notably, Vietnam’s GDP grew by 13.67% in the third quarter of 2022, partially due to a surge in exports from the US, which increased by 25.4% from 2021. Taiwan’s GDP also increased by 4.1% in Q3 2022, largely due to an uptake in consumer spending.

This was Vietnam’s first quarterly growth over 10% since 2009, following a 7.83% increase in Q2 2022.

An economist at Mizuho Research & Technologies, Yusuke Koshiyama commented that, “the export-based Vietnamese economy is benefiting from a global economic recovery.”

Personal consumption has also aided in this economic recovery, retail sales growing 50% year-0n-year in August. Lowered travel restrictions for foreigners also aided with this rebound, the tourism industry contributing to about 10% of the country’s GDP.

Taiwan’s economy, despite facing reduced exports, rebounded due to an increase in domestic consumption following reduced Covid-19 restrictions. The 4.1% GDP growth is also an increase from it’s 3.05% growth in Q2 2022.

According to Taiwan’s Directorate General of Budget, Accounting and Statistics, “Real exports of goods and services grew by 1.36% (year-on-year), dragged by weakened global demand and intensified inventory adjustment.”

Real private final consumption grew by 7.49% year-on-year due to recovery in the retail, dining out, recreation, and transportation sectors.

“GDP growth of more than 4% is good news compared to the expected 3% growth. This is an upside surprise, especially as the growth is driven not from exports or investments but from private consumption. Consumption has been a weakness in Taiwan’s economy since the COVID-19 pandemic began in 2020. The latest results represent some rebalancing — much needed as the picture darkens heading into 2023,” commented Nick Marro, lead analyst for global trade of the Economist Intelligence Unit.

Taiwan remains hopeful that its world-leading tech sector will soon boost this recovery, the region’s Affairs Minister Wang Mei-hua affirming, “Investors should have faith in Taiwan’s semiconductor industry, as Taiwanese suppliers play a critical role in the global supply chain and are irreplaceable.”

Both financial hubs Singapore and Hong Kong‘s GDPs increased by 1.5% in Q3 2022 respectively.


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