Additionally, the strength from domestic consumption support to GDP growth must exceed that of export headwinds. The key to answering these questions will hinge on whether the three fundamental causes that have driven the recent path of Taiwan’s GDP growth are temporary or persistent phenomena. Thus, as activity fully normalizes, the additional support to GDP growth will fade. The remarkable performance of exports in 2021 was unique, mainly because the global tech cycle environment was extremely favorable to Taiwan’s tech industries. As the economy fully normalizes, additional support from private consumption to GDP growth will fade, so the second two determinants have played a more influential role.
