The economic composite index rose to 114.08 points last month, the fourth monthly rise in a row and the highest level since August 1983, Wu Rong-i (
Fueled by a global economic recovery and a booming domestic bourse, local market demand, exports and production indicators have showed signs of expansion, Wu said.
Wu, also one of President Chen Shui-bian's (陳水扁) economic advisors, predicted that the economy will further revive as the government will be doing its best to create a positive climate in the runup to the presidential election.
The positive effects of the government's economic stimulus plans, including a five-year NT$500 billion (US$14.8 billion) public-works expansion program, will gradually become apparent, further lifting the economy from the second half of this year through next year, the Wu predicted.
The central bank has cut its key rate 15 times since December 2000, most recently on June 26, and that's encouraging consumers and companies to borrow, spend and invest.
Last month, the Directorate General of Budget, Accounting and Statistics (DGBAS) forecasted that the annual GDP growth for his year would be 3.06 percent, while figure is expected to climb to 3.81 percent next year.
The DGBAS lifted its export growth estimate to 7.1 percent for the year.
The central bank, which is scheduled to hold its quarterly policy meeting at 3pm today, will probably leave its benchmark interest rate unchanged at a record low to help revive growth, analysts said.
According to the results of a TIER survey, 51.1 percent of domestic companies were optimistic last month about business conditions in the coming six months, up from 49.6 percent posted in July.
Some 39.1 percent, down from 39 percent from a month ago, thought business conditions will remain stable, while 9.8 percent, a fall from 11.4 percent, believed that business conditions will deteriorate over the next six months.
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