DGBAS raises Taiwan’s GDP estimate for 2014

2014-12-02

The growth forecast for Taiwan’s 2014 gross domestic product was raised 0.02 of a percentage point to 3.43 percent due to robust demand for major exports, according to the Directorate-General of Budget, Accounting and Statistics Nov. 28.

The country’s per capita GDP is projected to reach US$22,518, with consumer price increases remaining in check at 1.18 percent as a result of weak global oil prices and mild weather.

“Commodity exports are set to grow 3.01 percent to US$314.6 billion for the year, as demand for the country’s semiconductor products continues to pick up steam,” a DGBAS official said. “Steady recovery at home and abroad will also bolster capital investment and add momentum for the local machinery sector.”

Although the recent food oil scandal dented consumer confidence, a falling unemployment rate and rising wages have partially offset the negative impact and will drive up private consumption by 2.76 percent for the year, the official added.

Positive sentiment is also reflected in heightened private investment, which is expected to expand by 4.1 percent, as the aviation, telecommunications and semiconductor sectors keep on ramping up production capacity.

Given the even rosier outlook for next year’s global economy, the official said Taiwan’s commodity exports should increase by another 3.56 percent in 2015, with private consumption and investment rising 2.74 percent and 5.59 percent, respectively. Inflation is expected to hold at 0.91 percent.

The DBGAS also revised Taiwan’s annual GDP growth between 2007 and 2013 to 3.42 percent, which is 0.14 of a percentage point higher than the 2011 figure. Estimates for the first three quarters of the year were adjusted upward to 3.41 percent, 3.87 percent and 3.63 percent, respectively. The fourth quarter projection was modified to 2.83 percent, a quarter of a percentage point lower than previously anticipated.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=224692&CtNode=413)