DGBAS ups 2014 GDP estimate for Taiwan

2015-02-24

Taiwan’s gross domestic product growth estimate for 2014 was revised upward to 3.74 percent, reflecting robust demand at home and abroad, according to the Directorate-General of Budget, Accounting and Statistics Feb. 16.

Per capita GDP is projected to reach US$22,632, with consumer price increases remaining in check at 1.2 percent on weak global oil prices and improving purchasing power.

“Exports in commodities and services grew 5.74 percent in the fourth quarter on the back of booming demand for Taiwan’s major products like basic metals, electronics and machinery,” DGBAS Minister Shih Shu-mei said.

This positive sentiment was reflected by private consumption during the period. Overall, 4Q consumption was up 2.39 percent from a year ago, buoyed by rises of 8.35 percent and 4.31 percent in tourist attraction visitors and new car sales, respectively, as well the rollout of the latest smart handheld devices.

Advances in gross capital formation are also instrumental in the GDP adjustment, Shih said. “Year-on-year growth was pegged at 2.68 percent, with fixed investment rising 1.28 percent and inventory variation up NT$3.2 billion (US$101.8 million).”

Taiwan’s GDP growth outstrips that of the U.S., 2.4 percent; Singapore, 2.8 percent; and South Korea, 3.3 percent, the DGBAS added.

As global economic conditions continue rebounding, Shih said she expects Taiwan semiconductor manufacturers’ capacity expansion and business opportunities created by the development of the Internet of Things to lift local exports 7.26 percent to US$317 billion in 2015.

“GDP and the consumer price index are also forecast to gain 3.78 percent and 0.26 percent, respectively, with per capita GDP reaching US$22,823, and gross national income US$23,640.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=227624&CtNode=413)