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Think tank CIER raises Taiwan's 2014 economic forecast (update)

Think tank CIER raises Taiwan's 2014 economic forecast (update)

Taipei, Oct. 7 (CNA) The Chung-Hua Institution for Economic Research (CIER) has revised upwards its forecast for Taiwan's economic growth in 2014 because of continued strength in the country's private consumption and investment. The Taipei-based think tank predicted on Tuesday that Taiwan's gross domestic product (GDP) will grow 3.46 percent in 2014, up 0.31 percentage points from its previous projection of 3.15 percent in July. The CIER also estimated Taiwan's 2015 GDP growth at 3.53 percent on the back of a mild recovery in the domestic economy. The think tank is slightly more upbeat about Taiwan's growth this year than the official Directorate General of Budget, Accounting and Statistics, which forecast in August that the country's GDP will grow 3.41 percent in 2014 and 3.51 percent in 2015. "We found that the recovery of many local sectors has outperformed our expectations since the first half of this year," CIER President Wu Chung-shu told a press briefing. "Despite a slowdown in macroeconomic conditions, Taiwan still has performed pretty well in the third quarter and is expected to maintain a growth rate of above 3 percent in the fourth quarter," Wu said. According to the CIER's estimates, Taiwan's economy grew 3.76 percent in the July-September quarter -- the fastest growing quarter of 2014 in its projections -- and will grow 3.13 percent in the fourth quarter. Liu Meng-chun, the head of the CIER's Economic Forecasting Center, said uncertainties remain in the long term, and slowing economic activity in emerging markets such as China is likely to drag down worldwide economic growth. Also, China's government has asked Chinese companies to shift at least 30 percent of their orders to domestic suppliers in recent years, leading to a decline in orders for intermediate goods from Taiwan such as semiconductors and electronics components, Liu said. (By Jeffrey Wu)


Updated : 2020-12-05 08:31 GMT+08:00