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.
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
TECH WINNERS: Taiwan and South Korea reported robust trade, which suggests that they have critical advantages in the rapidly expanding AI supply chain, an official said Exports last month surged to a new high, as booming demand tied to artificial intelligence (AI) infrastructure fueled shipments of advanced technology components, underscoring the nation’s pivotal role in the global semiconductor supply chain. Outbound shipments climbed to US$80.18 billion, the highest ever for a single month, rising 61.8 percent from a year earlier and marking the 29th consecutive month of growth, the Ministry of Finance said yesterday. “The surge was driven primarily by global investment in AI infrastructure,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said. The mass production of next-generation AI computing systems has accelerated procurement across the semiconductor supply
RSS