Taiwanese expect GDP growth this year to approach 3 percent and the TAIEX to rally above 24,000 points, as major local technology firms benefit further from artificial intelligence (AI) applications, a survey by Cathay Financial Holding Co (國泰金控) showed yesterday.
The survey revealed positive sentiment among Taiwanese on top of last year’s GDP growth of more than 4 percent and a 28.47 percent spike on the TAIEX, mainly driven by firms in global AI supply chains.
All respondents believed that Taiwan’s export-oriented economy would expand this year, although they disagreed about the pace of growth, according to the survey of 17,573 people between Jan. 1 and 7.
Photo: CNA
A majority of them, 52.2 percent, said that GDP growth would fall within 3 percent in light of a high comparison base last year, below the government’s projection of 3.29 percent. The remaining 47.8 predicted a bigger expansion.
Healthy corporate earnings helped drive belief that the TAIEX would surpass 24,000 points in the first half of this year among 41.7 percent of respondents, higher than the 25.2 percent with an opposite view, while the other 20.4 percent were neutral, the survey showed.
Risk appetite has picked up with 32.9 percent of respondents who expressed an interest in channeling their cash into shares, more than double 15.7 percent who intend to cut their positions, while the remaining 51.4 percent plan to maintain their holdings, it showed.
In addition, 31.8 percent were upbeat that their income would increase in the next six months, while 12.1 percent forecast it would fall, it showed, in line with the government’s plan to increase the pay of civil servants this year.
The private sector has pledged a similar move to attract and retain talent.
People also displayed more willingness to purchase big-ticket items at 32.5 percent, higher than the 20.6 percent who plan to reduce their budget, while the remaining 56.1 percent plan to stick to their original plans, the survey found.
By contrast, the housing market is under pressure, with more people interested in selling rather than buying houses, it showed, with 32.5 percent believing it is wise to sell now, higher than the 17.2 percent who think it is advisable to buy.
That sentiment gap is unfavorable for the housing market, as it indicated that sellers would need to make price concessions if they want to make a quick sale.
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