The National Development Council expects Taiwan’s GDP to grow by between 3.8 and 4.2 percent in 2021. (Staff photo/Pang Chia-shan)
 

Taiwan’s gross domestic product is forecast to increase by between 3.8 and 4.2 percent in 2021 on the back of successful management of the COVID-19 pandemic and a growing local economy, according to the National Development Council.

In the latest economic forecast released at yearend by the Cabinet-level agency, Taiwan’s 2021 per capita GDP is expected to top the US$30,000 threshold for the first time at between US$30,038 and US$30,145, with core consumer prices increasing between 1-1.5 percent and unemployment of 3.6-3.8 percent.

According to the NDC, while the global economy is set to recover this year, uncertainties still remain, including the effectiveness of coronavirus vaccines, risk of further U.S.-China trade friction and fluctuations of global financial markets and raw material prices.

Leveraging the success of Taiwan’s disease-fighting efforts, the government is continuing to strengthen the local economy’s global competitiveness by fast tracking digital transformation, fostering supply chains for emerging industries and spurring investment, the NDC said.

An improving global outlook will also drive demand for Taiwan’s key exports such as semiconductors and information and communication technology products, the NDC said. As the impact of coronavirus gradually recedes in Taiwan and consumer confidence continues to rebound, private consumption is forecast to grow 4.04 percent in 2021, it said.

Citing the general consensus among global think tanks, the NDC said the world economy may experience explosive growth in the second half of the year if vaccination programs against COVID-19 are successful. The government will continue to implement key projects such as the six core strategic industries initiative so as to prepare Taiwan for the post-pandemic era, it added.

Unveiled by President Tsai Ing-wen during her 2020 inauguration and building on the five-plus-two innovative industries program, the six core strategic industries comprise the information and digital technology; cybersecurity; biotech and medical technology; national defense; green and renewable energy; and strategic stockpile industries. (SFC-E)