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Taiwan economy grows at solid pace, signals improving global demand

Published on Apr 30, 2014 1:30 PM

TAIPEI (Reuters) - Taiwan's export-dependent economy grew at its quickest pace in over a year in the first quarter, data showed on Wednesday, suggesting rising momentum in developed economies and an improving outlook for the global tech sector.

The preliminary growth rate of 3.04 per cent in the three-months to March 31 also indicated that the island's economy may be able to weather a slowdown in China, its biggest market, as exports to the United States and Europe showed a heartening pick up.

Taiwan's economy, home to the world's biggest contract chipmaker and a crucial supply chain for major electronics brands, is often viewed as a bellwether for global growth and tech demand.

"What's eye catching was the strong contribution of net exports, which added 1.57 percentage points to the overall growth rate," said analyst of Raymond Yang with ANZ in Hong Kong.

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