Despite uncertainties over the global economy, Taiwan’s gross domestic product will grow as forecast on the back of booming exports and increased tourism, according to the Ministry of Economic Affairs June 29.
“Taiwan’s GDP will grow by more than 5 percent this year,” said MOEA Minister Shih Yen-shiang during his opening address at the Taiwan International Branding Forum in Taipei.
As the world braces for fallout from the European debt crisis and the threat of a double-dip recession for the U.S. economy, “Taiwan can expect to sidestep these negative developments due to its role in the East Asian economy,” Shih said.
Emerging markets like mainland China and members of the Association of Southeast Asian Nations are still growing strongly, Shih said, which will continue driving up demand for Taiwan’s exports.
The opening of Taiwan to solo mainland Chinese tourists is also set to attract individuals with more spending power from the other side of the strait and generate business opportunities for Taiwan at every level. “This is definitely a favorable development in terms of the economy,” Shih said.
In related news, Taipei-based Polaris Research Institute adjusted its economic forecast upward for Taiwan from 5.01 percent to 5.20 percent June 29.
“While the pace of recovery could slow in the second half of the year, the overall picture still remains healthy,” said PRI President Liang Kuo-yuan.
“Demand will pick up for Taiwan’s signature industries in the fourth quarter as the traditional peak season approaches,” Liang said. Domestic consumption is also set to increase in the months leading up to the presidential and legislative elections early next year.
Exports will maintain their momentum, with the annual growth rate projected at 8.33 percent, Liang said. Although industrial manufacturing has been the leading economic contributor, “services will take over as the main growth driver in the second half of the year,” he predicted.
Write to Meg Chang at meg.chang@mail.gio.gov.tw