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Taiwan GDP to grow 2.63% in 2020: TRI

Taiwanese businesses relocating back home identified as one contributing factor

(Port of Kaohsiung Facebook photo)

(Port of Kaohsiung Facebook photo)

TAIPEI (Taiwan News) — Taiwan is expected to achieve a 2.63 percent GDP growth rate in 2020, up from the estimated 2.59 percent this year, according to a forecast by local think tank Taiwan Research Institute (TRI).

NT$700 billion (US$23 billion) worth of returnee investment has pushed up domestic demand. Meanwhile, a global supply chain reshuffling has driven up Taiwanese exports in the semiconductor sector, said the report.

Private consumption is likely to grow by a modest 1.99 percent in 2019 and 1.95 percent in 2020, reflecting subdued consumer sentiment as a result of stagnant wage growth and economic uncertainty. Nevertheless, private investment is projected to increase by 7.5 percent this year and 3.83 percent next year, propped up by an improved business environment and government incentives, wrote UDN.

The TRI also predicts an optimistic trade outlook for Taiwan next year, with exports of goods and services to rise by 2.42 percent and imports to grow by 2.34 percent.

Last week, Oxford Economics released a report that put Taiwan’s exports on a growth trajectory in 2020. It suggested that order transfers and a global demand for high-tech products are the main driving forces of the country’s export sector.

Updated : 2021-07-26 01:22 GMT+08:00