Standard & Poor’s (S&P’s) yesterday said Taiwan’s GDP was expected to grow between 4.5 percent and 5 percent this year, a level equivalent to Hong Kong, but lower than in Singapore and South Korea.
Singapore’s GDP growth is projected to be between 5.5 percent and 6 percent, while South Korea will expand between 5 percent to 5.5 percent, S&P’s said in a report yesterday.
Taiwan’s Directorate-General of Budget, Accounting and Statistics revised last month the nation’s GDP growth forecast to 4.72 percent from its November estimate of 4.39 percent.
At the time, Premier Wu Den-yih (吳敦義) had said Taiwan’s GDP growth could reach 4.9 percent, higher than the global average of 2.9 percent and surpassing Japan, South Korea, Hong Kong and the US.
Meanwhile, the benchmark TAIEX could hit 8,800 points this year, S&P said. This was an increase of 7.5 percent from 8,188 points on Dec. 31 last year — the highest level in 18 months.
“Taiwan’s decision to open its borders to allow companies from mainland China to invest is a recent example of government reform that provides bilateral growth momentum,” the ratings agency said.
Growth this year is expected in all the Asia-Pacific economies, the result of a modest recovery in the US and Europe, the persisting effects of monetary and fiscal support mechanisms and gains in intraregional trade amid growing local demand, the report said.
China, India, Vietnam and Indonesia will continue to lead the pack this year, it said.
While economic prospects for the Asia-Pacific region are for the most part optimistic, some risks will continue to haunt recovery.
Inflationary concerns remain amid oil and commodity prices and higher asset prices. The latter recently showed a tendency to surge beyond levels warranted by demand-supply conditions, it said.
“Higher inflation could inspire faster rate hikes, which may in turn jeopardize the pace of the growth rebound,” it said. “Inflation may also deter recovery in private investment.”
As economic recovery in the US and Europe remains fragile, global economic stability will be a crucial factor in the revival of the Asia-Pacific, S&P said.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Arm Holdings PLC approached Intel Corp about potentially buying the ailing chipmaker’s product division, only to be told that the business is not for sale, according to a source with direct knowledge of the matter. In the high-level inquiry, Arm did not express interest in Intel’s manufacturing operations, said the source, who asked not to be identified because the discussions were private. Intel has two main units: A product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories. Representatives for Arm and Intel declined to comment. Intel, once the world’s largest chipmaker, has become the
RSS