Taiwan’s economy is set to grow 2.82 percent this year on the back of the recovering global economy and increasing domestic consumption, according to the Directorate-General of Budget, Accounting and Statistics Feb. 18.
In the latest DGBAS forecast, which assesses growth at 0.23 percentage points higher than the previous release in November 2013, annual gross domestic product per capita will hit US$21,153, with the consumer price index rising 1.07 percent.
“Improving conditions in major economies such as Germany, the U.K. and U.S. are expected to help stabilize the pace of recovery worldwide,” the DGBAS said.
This positive outlook is supported in the most recent projections by economics organization IHS Global Insight, which tips the global economy to gain 3.3 percent, the highest level in four years, with emerging markets leading the way at 5.1 percent.
Based on the latest International Monetary Fund forecast, the DGBAS said Taiwan’s exports will grow 3.33 percent to US$315.6 billion, while imports will surge by 3.95 percent to US$280.7 billion.
Private consumption is forecast to pick up 2.44 percent, largely due to booming demand for automobiles and travel spurred by promotional campaigns by car dealerships and the launch of new budget airlines. An improving labor market will also help boost consumer confidence, the DGBAS added.
Such positive sentiment also extends to the corporate sector, with the agency expecting private investment to grow 4.39 percent as a result of expansion by local sectors, especially aviation, semiconductors and telecommunications.
The DGBAS simultaneously adjusted upward its growth estimates for the last quarter of 2013 to 2.95 percent, a rise of 0.03 of a percentage point from last month's forecast, on the strength of better-than-expected domestic demand. This puts Taiwan’s 2013 GDP growth at 2.11 percent and CPI increase at 0.79 percent. (SFC-JSM)
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