Taiwan GDP soared 6% in 4Q12

It's proof that economy has bottomed out in 3Q.

According to DBS, the 4Q GDP reported a stronger-than-expected rise of 3.4% YoY, or 6.0% QoQ saar. 

This was the second consecutive quarter of growth acceleration, supporting DBS' assessment that the economy has bottomed out in 3Q12 and entered the expansion phase from 4Q12. The 4Q growth was also more balance than expected.

Net exports contributed one half to the headline growth (1.8ppt), while private consumption and gross capital formation also made notable contribution of 0.8ppt
and 0.9ppt respectively.

Here's more from DBS:

A strong growth in the final quarter of the year elevates the forecast trajectory for the next year. Indeed, the statistics agency yesterday upgraded the 2013 growth forecast by 0.4ppt to 3.5% (2012: 1.3%).

We are comfortable to maintain our above-consensus forecast of 4.2%. Exports and investment are expected to lead growth, driven by recovering demand from China and improving  business sentiment thanks to reduced risks in Europe.

Consumption is also likely to regain momentum this year, as inflation normalizes after the temporary supply shocks in 2012. From the sectoral perspective, the export-oriented and cyclically-sensitive manufacturing sector will lead the recovery this year.

Growth drivers in the services sector should also remain intact, thanks to cross-strait liberalization in tourism and financial services.