Taiwan Q3 preliminary GDP hits nearly two-year-high on iPhone 6 shipment

TAIPEI1 (Reuters) - Taiwan's economy posted its best growth in nearly two years and beat market expectations as increased demand for Apple Inc's new iPhone 6 boosted the island's electronics exports.

The economy grew by a preliminary 3.78 per cent year on year in the third quarter, the statistics agency said on Friday, faster than the 3.74 per cent growth seen in the previous quarter and better than the 3.7 per cent growth forecast in a Reuters poll.

"Electronics exports grew 16.96 per cent year-on-year in the third quarter, triggered by a hike in iPhone 6 shipments," the agency said in a statement.

A contaminated cooking oil scandal that has hit the food sector, supermarkets and restaurants and other venues where food is sold, probably dragged on GDP growth in the quarter.

"Domestic consumption has eased slightly because of the scandal," said analyst Kevin Wang of Taishin Securities Investment and Advisory in Taipei.

Taiwan's central bank will discuss interest rates at its next meeting in December.

"We still see a possibility that the central bank will raise rates in the first quarter of 2015," said Wang.