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Taiwan adjusts 2012 GDP growth forecast downward to 3.38%

Taiwan adjusts 2012 GDP growth forecast downward to 3.38%

Taipei, April 30 (CNA) The Directorate-General of Budget, Accounting and Statistics (DGBAS) has lowered its forecast for Taiwan's gross domestic product (GDP) growth in 2012 to 3.38 percent. The growth projection was 0.47 percentage points lower than the 3.85 percent forecast in February, the statistics agency said in a statement Monday. The agency also estimated that GDP grew 0.36 percent in the first quarter, well below the 1.19 percent it predicted for the first quarter in February, largely because of weaker-than-expected global demand, it noted. The consumer price index is expected to rise by 1.94 percent in 2012, up by 0.48 percentage points from the previous forecast of 1.46 percent, the agency said. The higher inflation projection was based on continued high international crude oil prices and the government's move to raise domestic fuel and electricity prices, the agency said. Meanwhile, researchers at Cathay Financial Holding Co., Taiwan's largest publicly listed financial conglomerate by assets, said Monday that they expect higher inflation and a proposal to tax gains on stock investments to affect Taiwan's financial sector. Another factor to contend with, the researchers said, was the declining willingness of Taiwan's consumers to spend, as revealed in the company's most recent economic confidence survey in April. With Taiwan facing suppressed domestic demand and sluggish export demand, the researchers predicted that the DGBAS would lower its growth forecast toward the level of 3.5 percent, which is what happened Monday. (By Lin Hui-chun and Elizabeth Hsu)


Updated : 2021-04-14 14:12 GMT+08:00