The nation's GDP growth was 5.7 percent last year, beating initial forecasts of 5.46 percent growth on robust exports. But it will likely slow down owing to global stagnation, the Directorate General of Budget, Accounting and Statistics said yesterday.
"The stellar increase in external demand was the main reason behind the higher-than-expected [6.39 percent] growth in the fourth quarter and the whole year," Director-General Hsu Jan-yau (
"Yet the impact of the US subprime crisis on the global economy is damping growth in most countries, including Taiwan," Hsu said.
Hsu forecast moderate economic growth of 4.32 percent for this year, down from the 4.53 percent predicted in November.
"Fortunately, the impact is likely to be relatively small, as the structure of our exports changed significantly last year," Hsu said.
Exports to ASEAN countries were up 41 percent last year, while demand from the Middle East and India also saw significant increases, Hsu said. Total exports to ASEAN countries plus Vietnam, India and the Middle East accounted for 17.7 percent of total exports last year, surpassing exports to the US at 13 percent and Europe at 10.8 percent.
In addition, the US$15.3 billion (US$483 million) net inflow last year from the triangle trade -- a common practice among China-based Taiwanese businesses that are operating via Hong Kong -- is expected to continue bolstering exports, Hsu said.
Domestic demand, however, was weak as private investments shrank 2.4 percent and private consumption rose by just 2.15 percent.
Chinatrust Commercial Bank (
"Whether domestic consumption and investment can pick up after the presidential election or in the second half of this year will be key factors in this year's economic performance," Liao said.
An anticipated record-high NT$960 billion in cash dividends to be issued this year could be a shot in the arm for private consumption, Hsu said, adding that consumer confidence would likely recover as the fallout from the credit-card and cash-card default crisis subsides this year.
Listed companies, meanwhile, issued NT$860 billion in cash dividends last year, contributing to a higher-than-expected increase in stock market turnover and government tax revenues, Hsu said.
In addition, the government said inflation would increase by 1.98 percent, up from last year's 1.8 percent, as fuel and food prices remain high.
A proposed 100 percent tariff on chip imports announced by US President Donald Trump could shift more of Taiwan’s semiconductor production overseas, a Taiwan Institute of Economic Research (TIER) researcher said yesterday. Trump’s tariff policy will accelerate the global semiconductor industry’s pace to establish roots in the US, leading to higher supply chain costs and ultimately raising prices of consumer electronics and creating uncertainty for future market demand, Arisa Liu (劉佩真) at the institute’s Taiwan Industry Economics Database said in a telephone interview. Trump’s move signals his intention to "restore the glory of the US semiconductor industry," Liu noted, saying that
On Ireland’s blustery western seaboard, researchers are gleefully flying giant kites — not for fun, but in the hope of generating renewable electricity and sparking a “revolution” in wind energy. “We use a kite to capture the wind and a generator at the bottom of it that captures the power,” said Padraic Doherty of Kitepower, the Dutch firm behind the venture. At its test site in operation since September 2023 near the small town of Bangor Erris, the team transports the vast 60-square-meter kite from a hangar across the lunar-like bogland to a generator. The kite is then attached by a
Foxconn Technology Co (鴻準精密), a metal casing supplier owned by Hon Hai Precision Industry Co (鴻海精密), yesterday announced plans to invest US$1 billion in the US over the next decade as part of its business transformation strategy. The Apple Inc supplier said in a statement that its board approved the investment on Thursday, as part of a transformation strategy focused on precision mold development, smart manufacturing, robotics and advanced automation. The strategy would have a strong emphasis on artificial intelligence (AI), the company added. The company said it aims to build a flexible, intelligent production ecosystem to boost competitiveness and sustainability. Foxconn
Leading Taiwanese bicycle brands Giant Manufacturing Co (巨大機械) and Merida Industry Co (美利達工業) on Sunday said that they have adopted measures to mitigate the impact of the tariff policies of US President Donald Trump’s administration. The US announced at the beginning of this month that it would impose a 20 percent tariff on imported goods made in Taiwan, effective on Thursday last week. The tariff would be added to other pre-existing most-favored-nation duties and industry-specific trade remedy levy, which would bring the overall tariff on Taiwan-made bicycles to between 25.5 percent and 31 percent. However, Giant did not seem too perturbed by the
RSS