Taiwan’s gross domestic product growth forecast for 2018 was revised upward to 2.42 percent, reflecting stronger domestic demand and a recovering global economy, according to the Directorate-General of Budget, Accounting and Statistics Feb. 13.
 
Per capita GDP is projected to reach US$25,893, while the consumer price index is set to increase 1.21 percent, 0.25 of a percentage point higher than the previous projection, on climbing global commodity and oil prices partially offset by a strong New Taiwan dollar.
 
According to the DGBAS, goods exports will rise 4.54 percent to US$331.8 billion as sectors such as automotive electronics, high-speed computation, Internet of Things and other smart technologies continue creating opportunities for local exporters. Imports are projected to increase 6.98 percent to $277.6 billion, buoyed by surging global commodity prices and robust export-induced domestic demand.
 
The DGBAS said ongoing manufacturing capacity expansion by Taiwan’s semiconductor sector is set to spur investment by related firms, while government investment promotion efforts and its Forward-looking Infrastructure Development Program will provide additional momentum. Overall, investment by the business sector will gain 3.62 percent, while private consumption will pick up 2.45 percent.
 
Running from September 2017 to August 2021, the NT$420 billion (US$14.4 billion) FIDP aims to meet Taiwan’s development needs for the next 30 years. It comprises eight categories: aquatic environments to build resilience against climate change, child care facilities to address declining birthrates, digitalization to create a connected nation, food safety to protect consumers’ health, green energy to ensure environmental sustainability, human resources to boost employment, railway development to provide convenient and safe transportation and urban-rural projects to balance regional development.
 
The DGBAS also revised the estimate for Taiwan’s 2017 GDP to 2.86 percent due to better-than-expected numbers in exports and private spending during the fourth quarter.
 
Annual exports and imports jumped 13.22 percent and 12.55 percent, respectively, while private consumption rose 2.34 percent, with CPI increases remaining in check at 0.62 percent. (SFC-E)