A local think tank has upgraded its forecast for Taiwan’s GDP growth this year to 5.16%, up 0.36 percentage points from the previous prediction. The Chung-Hua Institution for Economic Research (CIER) released the latest figure on Tuesday. The prediction is a record high since 2010. Last year’s GDP was 3.12%.
CIER President Chang Chuang-chang said Taiwan looks set to see brighter economic prospects. That’s despite the fact that the LEVEL 3 COVID-19 Alert that began in mid-May has dampened domestic consumption. In addition to booming international trade, Chang said a lower comparison base last year is also a factor for the higher forecast. Stable and higher-than-expected fixed capital formation and domestic consumption are also reasons for the high figure.
The think tank said average GDP growth will reach 7.5% in the first half of this year, and 3.05% in the second half of this year. It also said if the government lowers the LEVEL-3 Alert next week, as many expect, the GDP growth rate could even reach 5.86%.