TAIPEI (Taiwan News) — Taiwan’s Gross Domestic Product (GDP) is likely to expand by 5.84% this year instead of by the 5.16% forecast three months ago, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said Wednesday (Oct 20).
The higher figure was based on a combination of continued export growth and recovery of the domestic market, CNA reported. Economic growth in 2022 was likely to settle at a lower 3.55%.
The new figure for 2021 was the highest level of GDP expansion since 2011, and was the result of private investment and exports performing better than previously expected, the think tank said.
While the government’s issuance of stimulus vouchers to boost consumption in the wake of the COVID-19 pandemic had already been calculated into the projections, the CIER cautioned that power supply problems in China could still adversely impact the economy.
Inflation formed another concern, with a marked change from a decline of 0.24% in 2020 to a 1.84% rise forecast for 2021. The CIER warned that rising prices overseas might impact domestic products, with the restaurant sector having already announced price increases.
Businesses might choose to pass on the higher prices to consumers in a chain reaction, though, the CIER predicted next year’s inflation to be at 1.8%, about the same level as this year.