A Taipei-based think tank says the growth momentum of Taiwan’s economy is expected to increase in 2015.
The think tank is the Chung-Hua Institution for Economic Research, one of Taiwan’s leading think tanks. On Saturday ㄣresident of the institution, Wu Chung-shu, cited continued expansion of the local manufacturing activity as evidence of the growth momentum.
According to the institution, Taiwan’s purchasing managers index (PMＩ) for September stood at 53.3%. Although this is a drop of 2.1 percentage points from August, the data showed that the manufacturing sector was on the path of expansion.
A PMI reading of above 50 indicates expansion in manufacturing activity, while a figure below 50 signals contraction. September was the 22nd month in a row for Taiwan’s manufacturing activity to expand.
The institution recently raised its forecast of Taiwan’s economic growth for 2014 to 3.46%. The think tank has even predicted that the economy will grow further at a pace of 3.53% next year. Wu said that he has faith in the latest forecasts by his institution, adding that with a growing economy, the local job market will further improve and more employers will be willing to raise wages.