TAIPEI, Reuters – Taiwan’s third quarter economy grew slightly slower than anticipated due to coronavirus curbs in order to control a COVID-19 local outbreak. However, Taiwan’s high-tech exports remained robust on continued global demand for chips.

Preliminary data released by the stats agency on Friday showed that gross domestic product (GDP), increased 3.8% between July and September and a year before. It was the lowest growth rate since the second quarter in 2020, which saw a 0.3% increase.

This reading fell below the 4% forecasted increase in Reuters poll and was down from a 7.43% gain in the second quarter.

Seasonally adjusted, the annual rate of growth increased by 2.27% in third quarter, against a drop of 7.86% in second quarter.

The government’s stricter restrictions on coronavirus from May, which were meant to control a spike in domestic COVID-19-related cases, slowed headline growth.

Although the government had previously restricted private gatherings and closed entertainment venues, it has now lifted all of these restrictions as it is able to control the spread of the disease.

The quarter saw a decrease in consumption of 5.49%, but exports grew.

According to the statistics agency, total exports rose by 30% year-on-year in U.S. Dollar terms in the third trimestre.

Taiwan’s electronics exports were buoyed during the pandemic by strong demand for 5G technology and artificial intelligence, as well as a trend of working from home.