Taiwan’s economic growth is no longer “anemic.” That’s the word from a local think tank, the Yuanta-Polaris Research Institute, on Wednesday.
The institute has revised its GDP growth projection for Taiwan this year from 2.88% to 3.18%. The head of the institute’s research division, K. Y. Liang, said that international forecasting agencies are optimistic about a global rebound this year. He said that with global demand that can drive up export volume and stronger domestic consumption, Taiwan’s economic development should be better than last year.
“I will no longer use the word “anemic” to describe Taiwan’s economy," said Liang. "I’m more optimistic than before, but still cautious. Although the ship is sailing smoothly now, there are still unknown currents in the water.”
Liang said that uncertainties include the decoupling of the financial markets and the real economy. He pointed out that the recent growth of financial markets has been driven by easing measures instead of growth in the real sectors in the economy. Also, he said, geopolitical conflicts in Iraq, Ukraine, and the South and East China Seas are all potential risks that can impact the economy this year.