China lockdowns, Ukraine war make ‘relatively small’ impact on Taiwan economy
- Senior minister says Taipei is keeping a close watch on developments as some electronics components operations affected
- Companies in key sector are relying on existing stocks while others are postponing deliveries
Taiwanese economy minister Wang Mei-hua said on Wednesday some companies were relying on existing stocks while others were postponing deliveries, and the government was keeping a close watch on developments.
Taiwan is a major semiconductor producer with a trade dependent economy that is expected to have grown 2.9 per cent on-year in the first quarter, slowing from 4.86 per cent for the previous quarter, with exports holding up well but weaker domestic consumption.
The lockdowns in Shanghai and neighbouring Kunshan city have affected the operations of many Taiwanese firms, especially in the key electronics components sector.
“As for Taiwan’s own GDP, we look upon with caution the Russia-Ukraine war and China’s lockdown, but at present the impact on Taiwan is relatively small,” Wang said.
Taiwan, which releases its preliminary first quarter gross domestic product number on Thursday, does not have a major trading relationship with either Russia or Ukraine, though it has joined Western-led sanctions on Moscow.