The IMF has raised its forecast for Taiwan’s GDP growth for this year and next year.
In its World Economic Outlook report issued on Tuesday, the IMF raised its forecast for Taiwan’s GDP growth this year to 5.9 percent, up 1.2 percentage points from its April estimate.
The estimate was slightly higher than the 5.88 percent annual growth that the Directorate-General of Budget, Accounting and Statistics (DGBAS) forecast in August.
As for Taiwan’s GDP growth next year, the IMF raised it to 3.3 percent, up 0.3 percentage points from its April estimate and slightly lower than the DGBAS’ estimate of 3.69 percent.
The report also predicted that Taiwan’s consumer price index, a major gauge of inflation, would rise 1.6 percent this year and 1.5 percent next year, while the unemployment rate would be 3.8 percent this year and 3.6 percent next year.
South Korea, Singapore and Hong Kong — the other economies comprising the four Asian Tigers — are expected to see their economies grow 4.3 percent, 6 percent and 6.4 percent this year respectively, while their economies are expected to increase 3.3 percent, 3.2 percent and 3.5 percent next year respectively, the report said.
China’s economy is expected to grow 8 percent this year and 5.6 percent next year, Japan is expected to grow 2.4 percent and 3.2 percent this year and next year respectively, while the US is expected to grow 6 percent and 5.2 percent respectively, it said.
Worldwide supply chain disruptions are driving price increases and draining momentum from economies recovering from the COVID-19 pandemic, the IMF said.
The ongoing pandemic and a failure to distribute vaccines worldwide is worsening the economic divide and prospects for developing nations, it said.
The global economy is expected to grow 5.9 percent this year, only slightly lower than projected in July, before slowing to 4.9 percent next year, the report said.
“This recovery is really quite unique,” IMF chief economist Gita Gopinath said on the sidelines of the Annual Meetings of the IMF and World Bank.
Despite a strong return in demand, “the supply side has not been able to come back as quickly,” hampered in part by the spread of the Delta variant of SARS-CoV-2, which has made people reluctant to return to their jobs, Gopinath said.
Those labor shortages are “feeding into price pressures” in major economies, she said.
Energy prices have hit multi-year highs in the past few days, with oil above US$80 a barrel, weighing on households.
Gopinath said she expects energy prices to begin to retreat by the end of the first quarter next year.
Yet if higher inflation becomes entrenched, it could force central banks to respond aggressively, and rising interest rates would slow the recovery, the IMF said.
SELF-SUFFICIENCY: Alibaba is one of a number of Chinese firms that has answered Beijing’s call to invest in the development of cutting-edge technologies Alibaba Group Holding Ltd (阿里巴巴) yesterday unveiled a new server chip that is based on advanced 5-nanometer technology, marking a milestone in China’s pursuit of semiconductor self-sufficiency. The Chinese tech giant’s newest chip is based on micro-architecture provided by the SoftBank Group Corp-owned Arm Ltd, it said. Alibaba, which is holding its annual cloud summit in Hangzhou, China, said that the chip is to be used in its own data centers in the “near future” and would not, for the time being, be sold commercially. “Customizing our own server chips is consistent with our ongoing efforts toward boosting our computing capabilities with better
Production at Taiwan Semiconductor Manufacturing Corp’s (TSMC, 台積電) fabs was not affected by a fire at a construction site for a water recycling facility in the Southern Taiwan Science Park in Tainan. The world’s biggest contract chipmaker said that the construction site is not adjacent to its fabs, which were unaffected. CTCI Corp (中鼎工程) is responsible for the construction of the facility, which it is to operate itself once it is completed, the chipmaker said. The facility caught fire at about 11am, and the blaze was brought under control about 30 minutes after the incident was reported, the Southern Taiwan Science Park Administration
AGGRESSIVE STEP: With the new processors, Apple is aiming at the high-end chips Intel has provided for the MacBook Pro and other top-end Macs for about 15 years Apple Inc on Monday took the most aggressive step yet to strip Intel Corp chips from its computers, announcing more powerful homegrown Mac processors alongside a total revamp of its MacBook Pro laptop computers. The company showcased the chips at an event called “Unleashed,” which also included its latest audio products. The new components, called the M1 Pro and M1 Max chips, are 70 percent faster than its M1 predecessors, Apple said. It also unveiled a redesigned MacBook Pro, adding larger screens, MagSafe charging and better resolution. With the new processors and devices, Apple is aiming squarely at the high-end chips that Intel has
‘NO NEGOTIATING’: Acer spokesperson Steven Chung said customers in India whose data were affected were informed, while no user data in Taiwan was compromised PC vendor Acer Inc (宏碁) yesterday confirmed that it was hacked twice in one week — once in Taiwan and once in India — but denied any damage or leak of customer data. Acer spokesperson Steven Chung (鐘興維) said that the customers in India whose data were affected were informed, while no user data in Taiwan was compromised. The hackers have tried to initiate communication, but Acer has not responded, Chung said. “We are not going to negotiate and it is not company policy to pay ransom to hackers,” he said. Upon detecting the hack, Acer initiated all security protocols and conducted