TAIPEI (Taiwan News) — French bank Natixis and Singapore’s DBS Bank both presented optimistic forecasts for Taiwan’s economy in 2021 despite COVID-19, reports said Friday (July 30).

The French institution sees Taiwan’s Gross Domestic Product (GDP) expanding by 6.4% this year. DBS predicts 5%, falling to 2.8% next year, with a rise in interest rates possible for 2022, UDN reported.

Natixis concluded that the year-on-year revenue growth rate of 26% for the first quarter, declining to 18% during the second quarter of 2021, was no cause for alarm. Taiwan’s export growth was still functioning as an engine for strong progress, the French bank said.

On the stock market, Natixis said the semiconductor industry was forging ahead, while the shipping and transportation sector was the strongest industry sector. The bank expressed optimism about mid-term prospects for the country’s share index.

Earlier, one of Taiwan’s leading think tanks, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院), posted its forecast for the year’s GDP growth at 5.16%.