Taiwan’s economic growth outlook for this year was raised citing higher investment and exports, the Directorate-General of Budget, Accounting and Statistics said in its preliminary estimate published on Friday.
The real economy is forecast to grow 5.88 percent in 2021 instead of 5.46 percent estimated on June 4. In 2022, the economy is expected to expand 3.69 percent.
According to DGBAS, manufacturing activities were almost unaffected by the temporary suspension of factories amid the pandemic. Exports of goods and services are forecast to grow 17.93 percent in 2021.
Real private consumption is seen rising 1.36 percent, mainly owing to the impact of local pandemic on spending. Private fixed capital formation is expected to rise 11.89 percent this year.
In the second quarter of 2021, real gross domestic product increased 7.43 percent year-on-year, following a revised to 9.27 percent rise in the first quarter.
The growth rate for the second quarter was revised down marginally from 7.47 percent.
GDP contracted 4.21 percent on a quarter-on-quarter, seasonally-adjusted annualized basis after expanding 12.11 percent in the first quarter.
Real private final consumption fell by 0.41 percent due to COVID-19 local outbreaks. Regarding gross capital formation, investment in machinery equipment, transportation equipment and construction grew significantly.
Combining inventory changes, real gross capital formation expanded 8.56 percent.
Further, real exports of goods and services grew 22.62 percent, mainly driven by the strong foreign demand for electronic parts and ICT products, as well as the significant growth of traditional products, such as steel, chemistry product. At the same time, imports were up 17.46 percent.
The consumer price index is forecast to rise 1.74 percent this year, upwardly revised by 0.02 percentage point, mainly reflecting the raising gasoline and food prices. In 2022, inflation is expected to ease to 0.89 percent.