TAIPEI (Taiwan News) — After exceeding three percent this year, Taiwan’s economic growth will be able to move even faster and reach four percent, hoping for five percent in 2022, the Taiwan Institute of Economic Research (TIER) said Wednesday (Jan. 20).
TIER President Chang Chien-yi (張健一) based his analysis on existing predictions by think tanks and government bodies pinning this year’s Gross Domestic Product (GDP) growth in a range between 3.2 percent and 4.2 percent, the Liberty Times reported.
Looking at the global economy, he forecast an improvement for 2021, but only because last year’s situation was so bad due to the coronavirus pandemic.
As Taiwan managed to handle the virus in a relatively successful way, domestic consumption and exports provided the engine for continual economic growth, while many other economies suffered from contraction, Chang said. He added that both the internal and external factors would continue to exert a positive impact on Taiwan’s economy, allowing forecasters to predict four percent or even five percent growth for next year.
Several factors still clouded the horizon, including the slow roll-out of vaccines and the prospects for ending the trade war between the United States and China now that the Biden administration was taking over, according to Chang.
The pandemic was also creating more political uncertainty on a local level, with the rise of populism and a widening of the gap between rich and poor as likely results, the economist pointed out.
While the overall picture looked positive for Taiwan, the global economy still had to deal with factors that could threaten a quick recovery, according to the report.