Economist confident of 5 percent growth

Economic indicators suggest the nation's economic growth will top 5 percent this year, a renowned economist predicted yesterday.

Chen Tain-jy (陳添枝), president of the Chung-Hua Institution for Economic Research, said in an interview that many of Taiwan's economic indicators since the beginning of this year had been better than expected, including the performance of the stock market, the housing market and the financial sector.

In addition, he said, spending on the election campaigns for the March 20 presidential election and related activities had also contributed to the nation's economic performance.

Chen said that his institution forecast late last year that Taiwan would enjoy an economic growth rate of 4.36 percent this year. However, he added, the indications show that the growth rate must be adjusted upward.

"It will definitely surpass the 5-percent mark," Chen said.

Given that Taiwan experienced a recession in 2001 and that commodity prices have remained unchanged since then, Chen said that the predicted rapid economic growth will not bring pressure of inflation to the country.

The nation's economic recovery will be secured if its economic growth rate tops 5 percent this year, Chen said, adding that 4 percent growth could be expected next year.