Taiwan Economy Grows 6.9 Percent in 3Q

The growth was much higher than the average 5.16 percent increase forecast by 12 economists in a Dow Jones Newswires survey. It was the fastest rate since gross domestic product grew 9.23 percent in the second quarter of 2004, according to the Directorate General of Budget, Accounting and Statistics.

The directorate also raised its 2007 GDP growth forecast to 5.46 percent from its previous forecast of 4.58 percent announced in August, and its forecast for 2008 to 4.53 percent from 4.51 percent.

Consumer spending, which typically accounts for around two-thirds of Taiwan's GDP, increased 3.51 percent from a year earlier in the third quarter, faster than the previous quarter's revised 2.57 percent increase, the directorate said.

The directorate lowered its forecast of consumer spending growth for 2007 to 2.93 percent from the 3.00 percent it estimated in August.