Taiwan’s GDP to grow 2.9 percent, Merrill Lynch says

By Crystal Hsu  /  Staff reporter

Wed, Mar 13, 2013 - Page 14

Bank of America Merrill Lynch expects Taiwan’s GDP growth to be 2.9 percent this year. This is higher than the 1.26 percent recorded last year, but lower than forecasts of between 3.5 percent and 4.23 percent by other institutes.

Wayne Liaw (廖文宏), chairman and managing director of Bank of America Merrill Lynch Securities Taiwan, said he was “cautiously optimistic” about Taiwan’s economic outlook.

He said China’s economic recovery would benefit Taiwan as China accounts for 40 percent of Taiwanese exports, adding that Taiwan’s positive outlook will help attract foreign fund inflows.

Liao made the remarks at a press conference to introduce Merrill Lynch’s annual investment forum in Taiwan, co-organized by the Taiwan Stock Exchange Corp (TWSE).

More than 300 representatives from institutional investors with US$39 trillion (NT$1159.47 trillion) in assets under management are taking part in the three-day conference and along with another 120 companies listed in Taiwan and 29 listed abroad, TWSE chairman Lee Sush-der (李述德) told the press conference.

“Investors will come away with better knowledge of the capital market and listed companies in Taiwan,” Lee said, in line with the government’s efforts to invigorate the local bourse and raise its profile on the international stage.

Merrill Lynch technology analyst Robert Cheng (鄭勝榮) said he is positive about local shares given their valuations and planned launches of new products in the second half of the year.

Prior to that, non-technology and financial shares may dominate market attention, he said.