TAIPEI (Reuters – Taiwan’s export-reliant economy will have grown at a slower pace during the third quarter, according to a Reuters poll. This is despite strong global demand and growth in semiconductors.

The poll of 27 economists suggests that the gross domestic product (GDP), likely increased 4% over the period July-September compared to last year. It grew 7.43% in the first quarter.

This would represent the slowest growth rate since last year’s fourth quarter, when it was 5.09%.

As a key hub in the global technology supply chain for giants such as Apple Inc (NASDAQ:), Taiwan’s economy has outperformed many of its regional peers during the COVID-19 pandemic as it benefited from robust demand for its tech exports during the work-and-study-from-home trend.

Domestic consumption was severely affected by the rare increase in community COVID-19 transmissions that began mid-May. Also, strict curbs were imposed on gatherings. To restore consumer confidence, the government issued shopping coupons and has since ended the outbreak.

Forecasts by economists on preliminary GDP data, due Friday, varied from growth of 2.5% up to as high at 6.5%.

Taishin Securities Investment Advisory Co economist Kevin Wang said that the decline in growth is due to the COVID-19 epidemic at home’s impact on consumer consumption.

Exports have remained steady despite a decrease in third-quarter exports. He added that investment seems to be okay too.”

Taiwan Semiconductor Manufacturing Co Ltd. (TSMC), has also witnessed a rise in demand due to a worldwide shortage of chips, which has affected some automotive production lines.

In September, exports surpassed 29.2% to reach $39.65 billion. This was a new record.

However, the government remains bullish on Taiwan’s GDP prospects for full year. Policy makers, including the governor of Taiwan’s central bank, believe it can grow by 6% this fiscal year. This is higher than official projections.

This month, the International Monetary Fund raised Taiwan’s growth forecast to 5.9%, up from 4.7% in April.

The economy of Taiwan, Taiwan’s largest trading partner, experienced 4.9% growth in the third quarter compared to a year ago. This was due to power supply shortages, supply bottlenecks, and occasional COVID-19 epidemics.

The preliminary numbers for Taiwan will be published in a short statement, with no commentary. With more information and forecasts for the future, revised figures will be available in November.

(Poll compilation by Carol Lee. Reporting and editing by Jane Wardell.