Standard Chartered Bank has maintained its 2.1 percent growth forecast for Taiwan’s economy this year after lowering its projection in April from 2.5 percent.
Tony Phoo (符銘財), Standard Chartered’s senior Taipei-based economist, on Thursday last week said that the economy is expected to benefit from increasing investments by overseas Taiwanese companies seeking to avoid effects of trade frictions between the US and China.
Increased domestic investments are expected to offset the effects of weakening global demand amid the Washington-Beijing trade dispute, Phoo said.
The British bank’s forecast remains below that of the Directorate-
General of Budget, Accounting and Statistics (DGBAS), which on Friday raised its projection by 0.27 percentage points to 2.46 percent.
The DGBAS and Standard Chartered have said that domestic demand would be the main driver of economic growth this year.
Taiwan had a 41.6 percent year-on-year increase in capital equipment imports in June, up from 10.8 percent in the first five months of year, with semiconductor manufacturing equipment imports soaring 97.3 percent from a year earlier, Standard Chartered said.
The figures indicated that many local manufacturers were eager to expand production, Phoo said.
The semiconductor sector, which accounts for about 30 percent of Taiwan’s exports and 17 percent of GDP, would be a major driver of economic growth this year, he said.
The nation’s economy is expected to grow by 2 percent or more this year, although it might be adversely affected by the slowdown of China’s economy amid uncertainty over the Beijing-Washington trade tensions, Phoo said.
Furthermore, as inventory adjustments in the global tech industry continue, Taiwan’s export-oriented electronics sector could see some risks for the rest of the year, he said.
With the speed cryptocurrency is emerging as the millennial generation’s alternative asset of choice in India, it is hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old start-up, were arrested in late 2018. No, they had not pulled off a shady initial coin offering. Their “crime” was that they put up a kiosk in a mall in Bangalore where customers could swap bitcoin, ether or ripple for cash or vice versa. That was the whole point of unocoin, their crypto token exchange.
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