CIER revises its economic growth forecast upwards to 4.26%

August 9, 2007

Citing strong global trade and a better-than-anticipated performance from the global economy, the Chunghwa Institution for Economic Research (CIER) has revised its growth projections for Taiwan's economy upwards to 4.26%. CIER previously forecast 4.17% growth in May.

CIER announced its Q3 report for 2007 at a press conference presided over by CIER President Daigee Shaw and Wang Lee-rong, head of CIER's Economic Outlook Center.

Wang noted that economic growth Taiwan in Q1 rose by 4.15%, thanks to strong foreign trade. The revised growth figures reflects a worldwide trend, as most of the world's major economies - with the exception of the US - have fared better than expected, said Wang.

Although global oil prices are expected to rise, CIER said global trade will continue to be strong; coupled with favorable expectations for the stock market as well as upcoming legislative elections, Taiwan's economy will post an even better performance in the latter half of the year.

According to CIER's model calculations, Taiwan's economic growth rates will be 4.06% in Q2, 4.13% in Q3, and 4.69% in Q4.

Wang also noted that private consumption is projected to grow by 2.91%. Although it lags behind economic growth projections by 1.35 percentage points, this figure is still the second highest since 2001, said Wang.

CIER also projects that the economic growth rate in 2008 will be 4.52%, with private consumption growing by 3.01%.

(Central News Agency)

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