Mon, May 15, 2017 - Page 16 News List

Export uptick to lift economy; consumer prices to rise: Ifo

Staff writer, with CNA

Taiwan’s economy is expected to improve over the next six months, while the New Taiwan dollar will depreciate against the US dollar, the Germany-based Ifo Institute said.

In its latest quarterly World Economic Survey, Ifo said that Taiwan’s exports, which account for about 60 percent of the nation’s GDP, would continue to pick up, while local consumer prices would increase accordingly.

Government data show that Taiwan’s exports rose an annual 9.4 percent last month, marking the seventh consecutive month of year-on-year growth.

In the first four months of this year, exports rose 13.6 percent year-on-year to US$96.42 billion.

Private consumption in Taiwan will stage a rebound over the next six months after stagnating in the first quarter, while capital formation is also expected to improve, Ifo said.

The survey on Taiwan’s economy was released following Ifo’s interviews with 15 experts from economic think tanks, financial institutions and academic circles, the National Development Council said.

The German research group said the NT dollar will fall against the greenback at a time when the US Federal Reserve is pursuing a rate hike cycle on the back of the improving economy of that nation.

As for the global economy, Ifo said the fundamentals improved significantly in the second quarter with the Ifo World Economic Climate index rising from 2.6 points in the first quarter to 13 points, marking the highest growth since January 2013.

Ifo said that its expectations for the global economy also increased after it interviewed 1,118 economic experts from 120 nations.

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