Central Bank raises economic growth forecast to 2.4%

Interest rates remain unchanged

Central Bank Governor Yang Chin-long.

Central Bank Governor Yang Chin-long. (CNA photo)

TAIPEI (Taiwan News) — For the first time this year, the Central Bank raised its economic growth forecast for 2019 to 2.4 percent, reports said Thursday (September 19).

Previously, the bank had estimated that the Gross Domestic Product would grow by 2.06 percent in 2019, but an improving export picture led to more optimism, CNA reported.

As expected, Thursday’s Central Bank meeting left interest rates untouched. Arguments cited by the bank in favor of the decision included stable inflation, an uncertain international economic situation, and the mid-range levels of domestic interest rates compared to those overseas.

One of the key reasons for the optimism about the economic growth rate was the return of Taiwanese investors in the wake of the trade war between the United States and China, the bank said. Taiwanese manufacturers have been leaving China to avoid U.S. tariffs on their products, and the government of Taiwan has been encouraging and helping them to return home.

For the second half of the year, economic growth was expected to reach 2.66 percent, which would result in an overall figure of 2.4 percent for 2019, CNA reported.