Minister of Economic Affairs Shih Yen-shiang (施顏祥) said yesterday that he remained optimistic about economic fundamentals this year despite a warning of a slowing global economy from the Organisation for Economic Co-operation and Development (OECD).
Local economic momentum is continuing into the third quarter, he said, and is expected to keep going in the fourth quarter on the back of robust exports and increasing investment.
Shih said that despite the fact the OECD lowered its global growth forecast, “I remain optimistic about the local economy for 2010.”
In an economic assessment report released on Thursday, the OECD said the global economy was losing strength and suggested further stimulus measures might be necessary to avoid another recession.
The OECD also cut its growth forecast for the seven richest economies to 1.5 percent for the second half of this year from 1.75 percent four months ago.
The Directorate General of Budget, Accounting and Statistics (DGBAS) last month forecast that the nation’s GDP would grow 8.24 percent this year, after the economy recorded 13.71 percent and 12.53 percent year-on-year increases in GDP for the first and second quarters respectively.
The DGBAS also upgraded its private consumption growth forecast to 2.78 percent this year from 1.99 percent, and raised its forecast for private investment growth to 23.4 percent from 18.38 percent.
The Ministry of Finance said on Tuesday that exports were likely to hit a record high of US$272.9 billion this year, with the amount for the second half of this year expected to reach US$141 billion.
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