Home

Where we are

Trade with Taiwan

Invest in Taiwan

News

Italian



Taipeieco.it - The Economic Division of Taipei Representative Office in Italy

 


News
 

Think tank expects Taiwan's GDP to grow over 4% in 2021
 

11/03/2020
 

 

Taipei, Nov. 3 (CNA) Taiwan's gross domestic product (GDP) will grow 4.01 percent in 2021 as adverse effects of the COVID-19 pandemic fade, the Taiwan Institute of Economic Research (TIER) predicted Tuesday.

The think tank, which was forecasting 2021 growth for the first time, also felt the low base of comparison established this year when the pandemic hit the hardest will yield higher rates of growth next year.

At the same time, the TIER revised upwards a previous projection for 2020 growth it made in July by 0.8 percentage points to 1.91 percent, making it more optimistic than the government.

In August, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Taiwan's GDP will grow 1.67 percent and 3.92 percent, respectively, in 2020 and 2021. The DGBAS will update its forecasts on Nov. 27.

TIER President Chang Chien-yi (張建一) said at a news conference that the key factor in expecting Taiwan's economy to pick up in 2021 was an assumption that the impact of COVID-19 will gradually fade, helping prop up global economies, including Taiwan's.

Although there have been signs of another wave of infections worldwide, Chang expected vaccines will emerge to effectively contain the virus in the upcoming year.

Domestically, Chang said, Taiwan will benefit from a restructuring of the global supply chain amid tensions between Washington and Beijing as overseas Taiwanese businesses invest more in Taiwan.

TIER said private consumption is expected to grow 3.18 percent in 2021, while fixed capital formation is expected to grow 3.93 percent and private investment will grow 4.64 percent.

Exports and imports of merchandise and services were forecast to grow 4.83 percent and 3.87 percent, respectively, in 2021. That compares to a 0.42 percent increase in exports and a 2.48 percent decline in imports projected by the think tank for 2020.

According to the think tank, Taiwan's GDP is expected to grow 3.72 percent, 6.68 percent, 3.23 percent, and 2.63 percent, respectively, in the first, second, third and fourth quarter of next year.

While 2021 is expected to be the best year for Taiwan's economy in five years, Jack Huang (黃蔭基), chief economist of SinoPac Financial Holding Co., warned at the news conference that U.S.-China tensions could still send ripples through the global economy.

 

(By Pan Tzu-yu and Frances Huang)

 

Link, https://focustaiwan.tw/business/202011030009

 


Ufficio di Rappresentanza di Taipei - Viale Liegi n.17, 00198 Roma | Tel. 06-98262800 - P. Iva 97076980586