Taiwan’s GDP could expand more than 4 percent this year on the back of strengthening exports, private investment and consumer spending, despite lingering uncertainty due to the COVID-19 pandemic, the National Development Council (NDC) said in a statement on Wednesday.
The projection came three days before the Directorate-General of Budget, Accounting and Statistics (DGBAS) is to update its growth figures tomorrow, after a forecast in November last year of a 3.83 percent pickup.
Exports last month spiked 36.8 percent year-on-year and are likely to expand by 3 to 8 percent this month, despite the week-long Lunar New Year holiday, the Ministry of Finance said last week.
Photo: Taipei Times file photo
The DGBAS forecast a 5.2 percent increase in exports this quarter, but the actual showing could prove twice as strong, the ministry said.
Demand for electronics used in smartphones, laptops, TVs and other technology products remains strong worldwide, as countries are expected to emerge from the COVID-19 crisis in the second half of the year, the NDC said.
Four percent growth would be stronger than most other economies, the council said, adding that the target can be reached if the government presses ahead with efforts to help companies upgrade, and guides idle funds from the private sector to infrastructure projects and business start-ups.
The government is considering removing restrictions in the insurance industry to give life insurance companies more financial incentive and greater flexibility to invest in social welfare ventures and public works projects, the council said.
It would also expand the cap for angel funds from NT$2 billion to NT$5 billion (US$70.6 million to US$176.49 million) to help groom local start-ups, it said.
The government also aims to team up with local lenders to create a financing mechanism that would provide NT$100 billion of loans for green ventures, the council added.
Meanwhile, electronics supply chains might continue to realign, driving local companies in foreign countries to move manufacturing facilities for high-end products back to Taiwan, the council said.
The migration would increase well-paid job opportunities and bolster private investment, it said.
Research bodies at home and abroad are forecasting GDP growth of 3.2 percent to 4.3 percent in Taiwan this year, the council said.
Vaccination against COVID-19 would allow the world to recover from the pandemic later this year, the council said, adding that it is closely monitoring how vaccination efforts unfold.
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