Taiwan’s GDP growth set to top 2 percent in 2016

2015/12/24

Taiwan’s gross domestic product will increase between 2.1 percent and 2.7 percent in 2016, with consumer price rises capped at 2 percent and unemployment hovering between 3.7 percent and 3.9 percent, according to the National Development Council.

These macroeconomic goals are based on projections released in November by the Directorate-General of Budget, Accounting and Statistics, an NDC official said Dec. 21, adding that they also take into accounts various factors at home and abroad.

“While most international think tanks predict a rosier outlook for next year, uncertainties still remain that may slow the pace of recovery in major economies,” the official said.

Such downside risks include fluctuations in global raw material prices, decelerating growth in mainland China, the impact of mainland China’s homegrown supply chain and U.S. interest rate hikes.

“As well as tackling these challenges, the government will continue enhancing the local business environment through industry transformation, regulatory easing and talent cultivation,” the official added.

“In addition to spurring consumer consumption, private investment and export growth, an important task is to strengthen Taiwan’s position in the global value supply chain.”

This will be achieved through a raft of measures being implemented by various central government agencies such as Productivity 4.0 and ide@Taiwan 2020. These should enable Taiwan to better position itself in response to the growing global digital economy.

According to forecasts by 10 local and global think tanks in the past two months, Taiwan’s 2016 GDP growth is estimated at between 1.84 percent and 2.7 percent, CPI increases at between 0.3 percent and 1.7 percent, and unemployment at between 3.6 percent and 3.96 percent.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=240564&ctNode=2194&mp=9)