Sat, Oct 15, 2005 - Page 10 News List

Lehman raises forecast

By Amber Chung  /  STAFF REPORTER

Lehman Brothers raised its forecast for the nation's economic growth this year, in light of better economic fundamentals, loosened macroeconomic policies and an uptick in global electronics demand worldwide.

In a report released on Thursday, Lehman Brothers raised its prediction for Taiwan's GDP growth to 3.3 percent from 3.1 percent.

"The combination of better economic fundamentals, loose macro policies, a still-booming Chinese economy, and the upswing in global electronics demand -- which seems to be gaining momentum -- is more than counteracting the negative effects on growth from high oil prices," the report read.

Furthermore, the country's industrial output is looking healthier than previously expected, with 5.9 percent year-on-year growth in August, Lehman Brothers said.

The nation's liquidity is ample, while its exports are heavily leveraged to the electronics cycle that is showing promising signs of upswing, it added.

Lehman Brothers also upgraded its GDP projections for China to 9.2 percent from 9.0 percent, while raising Hong Kong's to 6.3 percent from 6.0 percent and Thailand's to 4.0 percent from 3.4 percent.

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