Taiwan’s gross domestic product growth for 2020 is projected to reach 1.56 percent, according to the Directorate-General of Budget, Accounting and Statistics Aug. 14.
The DGBAS said this year’s per capita GDP is estimated at US$27,371, while the consumer price index is set to dip 0.19 percent due to falling oil prices.
According to the directorate-general, expected economic growth can be attributed to a 2.41 percent increase in investment by Taiwan’s business sector resulting from the rising capital expenditures of the country’s semiconductor manufacturers, increasing homebound investment by businesses operating overseas, establishment of green energy infrastructure, and expansion of 5G networks.
Conversely, private consumption is estimated to decrease 1.44 percent following stricter border controls imposed to contain COVID-19, the DGBAS said, adding that the effect will be partially offset by several economic stimulus measures implemented by the government.
In terms of trade, goods exports will dip 0.1 percent to US$328.9 billion while goods imports are estimated to drop 1.18 percent to US$282.3 billion due to declining global demand and raw material prices.
Comparing Taiwan to other countries and territories around the world, the DGBAS added that projected growth tops that of South Korea, Japan, Germany, the U.S. and the U.K, which saw GDP retreats of 0.8; 5.2; 6; 6.1; and 11.9 percent, respectively, in the latest predictions released by London-headquartered information provider IHS Markit Ltd.
The DGBAS also forecast Taiwan’s 2021 GDP will surge 3.92 percent on the back of rising numbers in trade, private spending and investment arising from a recovering global economy.
Annual per capita GDP will jump to US$28,758 with CPI increases remaining in check at 1.12 percent for the next year, according to the DGBAS. (YCH-E)
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