November 16, 2007
Chung-hwa Institution for Economic Research (CIER) announced that it is projecting economic growth at 4.55% in 2007, up from its 4.26% forecast in July.
Taiwan's economy continues to make a stable, upward climb, said Wang Lee-rong, Director of CIER's Center for Economic Forecasting.
CIER revised its growth projections upwards as Q2 was stronger than expected, said Peng Su-ling, Assistant Researcher at the Center for Economic Forecasting. In particular Taiwan experienced a high rate of domestic growth due to increased investment in robotics machinery -- mainly for the flat panel and semiconductor sectors -- which showed the highest growth at 20%.
Private consumption for the year is expected to increase by 2.8%, while private investment is projected to grow by 5.82%, the highest in the past three years.
Private consumption in the second half of the year is projected to increase by 3.4%. As the effects of the credit debt storm of 2006 have passed, CIER is projecting growth of 4.46% in private investment for the second half of the year, which would surpass public (government) spending.
Q4 growth for Taiwan's economy is expected to reach 4.52%. Private consumption and private investment are showing slightly lower growth than the previous quarter, given Q3's higher base for comparison.
The consumer price index went up by 1.33% in 2007, growing 0.73 percentage points over last year.
CIER also announced forecast figures for the economy in 2008, projecting a 4.41% growth rate for the year. Private consumption growth is being projected at 2.91% and investment growth at 4.94%, both increasing from 2007. Overall, the domestic sector is expected to contribute more to economic growth.
Exports are expected to slow down in comparison to 2007 with the overall slowing of the economy, said CIER. In addition, CIER projects that the CPI in 2008 will reach 1.98%.
(Central News Agency)
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