Taiwan’s National Development Council says that GDP growth in Taiwan may exceed 4% this year. That’s according to an analysis published by the council on Monday.
According to the report, Taiwan’s economic growth rests on three pillars – strong exports, stabilizing consumer spending, and dynamic investments.
As global economies see signs of recovery, supply chain problems are expected to ease. The council also expects that Taiwan’s semiconductor giants will expand their facilities and other Taiwanese enterprises will move operations back to Taiwan. Coupled with technological advancements, this will result in further expansion of Taiwan’s production capacity. As a result, exports may exceed US$472 billion, which would represent an increase of over 6% year-on-year.
The council expects growth in consumer spending to exceed 5% this year. That comes on the back of strong wage growth in recent months and government stimulus spending programs.
Additionally, three substantial government initiatives aimed at stimulating investment will be extended to 2024. They are predicted to result in additional NT$900 billion (US$32 billion) in investments and create 40,000 new jobs.