Finally, here's proof that Taiwan's economy is trying to recover

Improved employment is boosting consumer confidence.

Taiwan's economic recovery is proceeding slowly, and it is expected tha the preliminary estimate of June quarter GDP to show a 3% y/y expansion, mildly weaker than the March quarter's 3.1%.

According to a research note from Moody's Analytics, the acceleration in import growth over the quarter overwhelmed the rise in exports.

This has led the external sector to make a smaller contribution to growth.

Rising imports are a good leading indicator of future demand given the high proportion used as inputs to ultimately return as exports.

Here's more from Moody's Analytics:

To a lesser extent, higher imports also reflect rising domestic demand.

Improved employment helped consumer confidence hover around a record high in the June quarter.

The clouds over Taiwan's economy are starting to clear.

Export orders are a reliable indicator of exports two to three months in advance and they point to sustained improvement in the second half of 2014.

Export orders recorded their fastest expansion in 17 months in June with the major export markets—U.S., China and Europe—recording acceleration, largely thanks to electronics.

Our forecast for a 3.1% expansion in 2014, after 2013's 2.1%, looks on track.