The Chung-Hua Institution for Economic Research confirmed that they are inflating its forecast of 1.73 percent of the current year’s GDP growth to 2.11 percent, stating that the recovering world economy would be an advantage to Taiwan’s exports and private investments.
At a news conference in Taipei, CIER President, Wu Chung-shu reasoned why CIER has raised the percentage of GDP growth, “The stronger-than-expected momentum of the global economic recovery was the main reason CIER increased the forecast. With the nation’s exports’ performance steadily gaining momentum since the second half of last year, CIER is also raising its estimate for this year’s exports.”
But Wu has also remarked that domestic demand would give 1.57 percentage points of the 2.11 percent growth estimate.
Yuanta-Polaris Research Institute also forecasted the year’s GDP estimate to surpass 2 percent. While the Directorate-General of Budget, Accounting and Statistics (DGBAS) in February forecasted a 1.92 percent growth this year, the Taiwan Institute of Economic Research estimated a 1.78 percent growth.
In a recent statement, the IMF has stated that for the current year it would continue with its 1.7 percent GDP growth forecast for Taiwan. Abiding by the IMF estimate, Wu has stated his apprehension that the positive economic growth of Taiwan might stumble upon some possible economic hiccups.
Reasoning the economic growth of Taiwan, Wu has mentioned that any enhancement in oil sector of the nation or across the globe will be a boost to the economy of Taiwan and countries across the globe.
Wu has mentioned that CIER stated that the first-quarter GDP growth of 2.76 percent, supported by exports and industrial production momentum extending from the second half of last year. Growth is expected to speed-break to 2.17 percent this quarter, 1.83 percent next quarter, and 1.75 percent in the final quarter of the year.
CIER for the first time has released its forecast of the coming year in advance, stating a GDP growth of 2.15 percent for the country.