Government officials yesterday dismissed an IMF forecast that Taiwan’s GDP would contract by 4 percent this year, saying that the nation’s economy would continue to grow by 1.3 to 1.8 percent.
Directorate-General of Budget, Accounting and Statistics (DGBAS) Minister Chu Tzer-ming (朱澤民) made the assertion one day after the IMF released its World Economic Outlook report, which forecast that Taiwan’s GDP would decline amid a global recession.
“There is no need to take the [IMF] forecast seriously, as the international research body has failed to factor in the government’s NT$1.05 trillion [US$34.96 billion] program to mitigate the effects of the [COVID-19] pandemic,” Chu told reporters.
Photo: Tu Chien-jung, Taipei Times
The IMF also does not have the latest figures on Taiwan’s economic performance, as the DGBAS is to disclose first-quarter figures on April 30, he said.
The economy would remain in expansion mode this year, with growth of 1.3 to 1.8 percent, nearly 50 percent less than the agency’s prediction in February of 2.37 percent, he added.
The landscape has deteriorated significantly following the spread of the novel coronavirus across Europe and the US, leading governments worldwide to introduce travel restrictions and shut down non-essential businesses, Chu said.
Taiwan is susceptible to reduced global trade flows, but has been resilient thanks to a low number of infections, diminished dependence on Chinese tourists and the government’s quick response, he said.
The National Development Council said the IMF forecast reflected a lack of understanding of the nation’s economic situation.
The impact of the pandemic on the Taiwanese economy is much more controllable than in other Asian countries, because Taiwan has managed to minimize infections without invoking draconian isolation measures, the council said.
Manufacturing companies in Taiwan have maintained normal operations and a considerable number have reported order transfers from peers trapped by lockdowns elsewhere, it said.
Excluding special loans, relief and stimulus measures are to total NT$350 billion this year, accounting for 1.8 percent of GDP, that would help keep the economy growing and outperforming major trade rivals, as well as the regional and global average, the council said, adding that it would make sure budgets for public works are executed effectively.
Major economic data lent support to the government’s argument.
Exports in the first quarter expanded 3.7 percent, while imports increased 3.5 percent, faster than official projections of 2.19 percent and 1.85 percent respectively.
The IMF forecast that the world economy would contract by 3 percent this year, induced in part by concerted government efforts to combat the pandemic, before rebounding by 5.8 percent next year.
This story has been corrected since it was first published, which incorrectly stated in the fourth paragraph from the bottom that "Special loans as well as relief and stimulus measures are to total NT$350 billion this year." The online version of this story has been corrected into that "Excluding special loans, relief and stimulus measures are to total NT$350 billion this year."
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales