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NDC head expects economy to rebound in Q1

NDC head expects economy to rebound in Q1

Taipei, Nov. 12 (CNA) Minister of the National Development Council (NDC) Duh Tyzz-jiun (???) said Thursday that the local economy is expected to stage a rebound in the first quarter of next year in line with the global economy. Speaking in a session of the economics committee of the Legislative Yuan, Duh said that the economy is expected to improve further in the second quarter. Duh's forecast echoed a similar upbeat mood held by Cathay Financial Holding Co. (???) Chairman Tsai Hong-tu (???), who said a day earlier that the domestic economic fundamentals are likely to fare better quarter-by-quarter in 2016. In the third quarter of this year, Taiwan's economy contracted 1.01 percent from a year earlier, the worst performance since the third quarter of 2009, when the country's economy fell 1.24 percent year-on-year. The gross domestic product (GDP) contraction resulted from a 13.86- percent drop in Taiwan's exports from a year earlier in U.S. dollar terms, with outbound sales of electronic devices -- the backbone of the country's exports -- down 7.88 percent. Exports account for about 60 percent of Taiwan's GDP. Weakening global demand dragged down Taiwan's exports, which tumbled 11.10 percent year-on-year in October, making the ninth consecutive drop in the country's outbound sales. In the first 10 months of this year, Taiwan's exports fell 9.6 percent from a year earlier. On the back of the third quarter's GDP contraction and concerns over the country's poor export performance, two economic think tanks have cut their forecasts for Taiwan's economic growth for 2015 to less than 1 percent. Among them, the Taiwan Institute of Economic Research (TIER, ???) cut its estimate on Nov. 5 to a 0.83 percent increase, from a 3.11 percent rise forecast in July. Duh said that Taiwan's export weakness is in line with its regional rivals such as South Korea and Singapore, which have also fallen victim to falling global demand. He said that until there is increased demand from the largest global consumption markets, including Europe and the United States, these exports-oriented economies will not see their data improving. Duh said that Taiwan has to intensify its efforts to sign free trade agreements with its trading partners to offset the impact of falling global demand by taking advantage of a preferential tariff status under free trade agreements. (By Chen Cheng-wei and Frances Huang)


Updated : 2021-06-17 02:28 GMT+08:00