Taiwan (GDP Q22017):Hitting a temporary soft patch

Taiwan’s Q2-17GDP growth was marginally lower than expected and indicates thatthe economy lost some momentum after a strong start to the year. Privateconsumption and exports continued to drive economic activity, even asinvestment growth slowed sharply. Despite the moderation, we expect growth tohold up well through the rest of the year, supported by improving demand from theUS and the Mainland, along with increased demand for technology products. Onthe domestic front, a low unemployment rate and a strong stock market will likelyanchor private consumption growth . The resilience in economic activity coupledwith low levels of inflation should allow the central bank to remain on hold.