Taiwan's economy holds up in first quarter

Taiwan's economy grew 3.46 percent in the the first three months of the year, data showed Thursday, as a rise in exports and private-sector consumption cushioned it from a global slowdown.

The Directorate General of Budget, Accounting and Statistics also said it expected full-year growth for 2015 of 3.74 percent, up from a previous forecast of 3.43 percent and the best figure in four years.

The first-quarter growth rate is an improvement on the 3.35 percent seen in the previous three months and compares with 3.41 percent in the first quarter of 2014, said the Directorate.

Exports -- a key growth driver -- surged 5.88 percent year-on-year in January-March, while imports expanded 2.27 percent, it said.

Adding to the momentum was a 2.51 percent rise in private consumption, which was made possible by a 6.55 percent increase in average income.

The significant salary growth, rare after stagnation for years, led to a spending spree in the purchase of automobiles and smartphones, it said.

However, government spending in the first quarter fell 2.5 percent year on year while fixed asset investment dipped 1.12 percent, according to the Directorate.

Taiwan's economy was buoyed last year by a steady recovery in developed countries as well as record-high exports and rising domestic consumption.