DGBAS revises '07 economic growth rate up to 5.46%

December 17, 2007

DGBAS revises '07 economic growth rate up to 5.46%

As exports remain strong and domestic demand shows stable growth, the Directorate General of Budget, Accounting and Statistics (DGBAS) has revised its economic growth projections for Taiwan up to 5.46%. DGBAS last predicted an overall growth rate of 4.58% in Aug.

DGBAS also projected that the Consumer Price Index (CPI) for 2007 would increase by 1.7%. The official government statistics bureau is also projecting a CPI year-on-year growth rate of 1.8% and economic growth of 4.53% in 2008.

DGBAS announced these projections at a routine press conference held by DGBAS head Hsu Chang-yao.

Hsu said that despite wavering confidence as a result of the US sub-prime mortgage loan crisis and rising prices for oil and raw materials, the emerging economies have been proven to hold strong purchasing power – thus giving reason to be 'cautiously optimistic' on the global economy.

And as profit projections are favorable on Q3 exports and manufacturing production, DGBAS believes that growth for the third quarter could reach 6.92%, said Hsu. This marks a 2.45 percentage point rise over DGBAS' projections in Aug.

Exports are also expected to remain strong with stable growth in domestic demand in Q4, with economic growth estimated at 5.43%.

DGBAS is also projecting a GDP for the year at USD 16,768, and USD 17,842 in 2008.

The CPI in Oct. grew by 5.34% year-on-year due to unfavorable weather conditions affecting vegetable prices, said Hsu. With rising global oil prices, the CPI for Nov. and Dec. is expected to rise by 3% year-on-year. But, as the CPI was low during the first half the year, the overall increase in the CPI for 2007 is expected to remain around 1.7%.

(Central News Agency)

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