Taiwan’s economy will continue to pick up steam in 2017 amid improving conditions at home and abroad, according to the National Development Council Jan. 31.
Citing forecasts by several local and foreign think tanks, including Taipei City-based Academia Sinica and Washington-headquartered International Monetary Fund, the NDC said Taiwan’s gross domestic product is poised to increase by between 1.6 percent and 1.87 percent this year.
In comparison, estimates by the Directorate-General of Budget, Accounting and Statistics show Taiwan’s GDP rose 1.4 percent in 2016, with the growth rate rising steadily from -0.23 percent in the first quarter to an estimated 2.58 percent in the fourth quarter.
Investment and exports in particular have been on the rise recently, with the nation’s overall economic monitoring indicator registering green, meaning stable, for six straight months as of December. Both the Purchasing Managers’ Index and Non-manufacturing Index indicated that the local economy is continuing to expand, the NDC revealed.
Local semiconductor firms are increasingly investing in advanced processing technologies, the council said, adding that manufacturing activities are expected to remain robust, driving private consumption and providing a much needed boost to the local economy.
To help maintain Taiwan’s economic growth, the NDC said the government is gearing up to implement structural reforms to overhaul the country’s industries, review existing laws and regulations governing investment and talent recruitment, as well as fast-track infrastructure development.
In terms of implementing structural reforms, the NDC said one of the key objectives is to enhance the well-being of the public through the promotion of sectors ranging from child care and long-term care to social housing and urban renewal.
Equally important is President Tsai Ing-wen’s five-plus-two innovative industries initiative, which covers the biotech and pharmaceuticals, green energy, national defense, smart machinery and Internet of Things sectors, as well as the circular economy and a new paradigm for agricultural development.
With regard to promoting next-generation infrastructure, the NDC said target areas include clean energy, scientific research, green rail transportation, water resources and projects catering to the elderly. In addition to fostering steady economic growth, these initiatives also help balance regional development, according to the council. (SFC-E)
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