January 23, 2005
The
MOEA stated in mid-January that, despite the looming presence of uncertainties in the global economy, Taiwan's economy still stands to maintain stable economic growth by posting an economic growth rate of 4% in 2005.
The
MOEA points out that the Economist Intelligence Unit has dropped its forecast for the annual growth rate for global gross domestic product in 2005 from 3.3% to 3.2% and predicts that the growth in world trade will fall from 10.1% in 2004 to 7.43% in 2005.
The ministry warns that, in addition to a general economic slowdown, the global economy faces four primary risks in 2005: 1) whether global oil prices will rise further, 2) whether possible large increases in interest rates will result in collapsing real estate markets or financial crises, 3) whether a loss of balance among major economies will lead to extreme fluctuations in currency markets, and 4) whether China's economy will experience a moderate slowdown from its current high rate of growth.
Despite the risks presented by variables in the world economy, the
MOEA points out that Taiwan is currently enjoying an appropriate level of growth in international trade and that a number of major government and private investment projects are taking off or are in full swing. The government has allocated
NTD 93 billion in order to pursue the New Ten Major Construction Projects. Such major long-term investments as the High Speed Railway and the fourth phase of Formosa Plastics' Sixth Naphtha Cracker project are rolling along. The high-tech sector is also preparing to put a number of 12-inch semiconductor foundries (Taiwan should have ten by 2006) and LCD panel plants on line.
(United Daily News)
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