The Directorate-General of Budget, Accounting and Statistics raised its projection of Taiwan’s 2021 gross domestic product growth to 4.64 percent on the strength of improving conditions at home and abroad Feb. 20.
The figure is 0.81 percentage points higher than an initial forecast made in November 2020, the DGBAS said, adding that the revised estimate brings the country’s expected per capita GDP to US$30,981.
According to the DGBAS, the adjustment is based in part on optimistic global economic outlooks by think tanks such as London-based IHS Markit and the U.S. government’s forthcoming stimulus package.
Several developments at home are also set to sustain the Taiwan economy’s strong performance this year, the DGBAS said. These include continued production expansion by the local semiconductor industry and additional investment by firms to capitalize on the restructuring of global supply chains.
At the same time, accelerating digital transformation by global enterprises and the increase in people working or attending school from home are creating new business opportunities for Taiwan firms, the directorate-general added.
The DGBAS is expecting private investment to increase 3.91 percent, with commodity exports surging 9.58 percent and imports making a similar gain of 9.77 percent during the year.
While business activities have been somewhat dampened due to COVID-19, the DGBAS projects private consumption will rise 3.74 percent as consumer confidence remains strong amid the country’s stable employment market and soaring stock prices. (SFC-E)
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