IMF tips above average Taiwan GDP growth

2015-04-16

Taiwan’s gross domestic product is set to grow 3.8 percent in 2015 and 4.1 percent in 2016, exceeding the global average of 3.5 percent and 3.8 percent, respectively, according to the International Monetary Fund April 14.

The country’s consumer prices will rise 0.7 percent and 1.3 percent, while unemployment is to remain stable at 4 percent for both years. The growth projections—contained in the latest IMF World Economic Outlook—are better than Hong Kong, 2.8 percent and 3.1 percent; Singapore, 3 percent and 3 percent; and South Korea, 3.3 percent and 3.5 percent.

Kao Shien-quey, deputy minister of the National Development Council, attributed the strong showing largely to rolling investment by the local semiconductor sector and mobile device suppliers. “Robust consumption spurred by weak global oil prices and an increasing number of tourists from abroad also played a part in the encouraging development,” she said.

The IMF forecast is supported by data from the Directorate-General of Budget, Accounting and Statistics showing Taiwan’s GDP will gain 3.78 percent this year to US$22,823. Private consumption and investment are set to increase 3.12 percent and 5.98 percent, respectively, during the period.

According to the IMF, advanced economies are projected to turn in stronger performances during 2015, while emerging and low-income markets will slow down. This is due to declining productivity, large exchange rate movements, legacies of the financial and eurozone crisis, and weak global oil prices.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=229293&CtNode=413)