The central bank said yesterday that it has upgraded its forecast of Taiwan’s GDP growth for this year to 3.82 percent, with the export-oriented economy expected to benefit from robust global demand for emerging technologies.
The upgrade was announced after the central bank wrapped up its quarterly policymaking meeting, raising this year's GDP growth from the previous estimate of 3.77 percent made in June.
The revised forecast came closer to an estimate by the Directorate-General of Budget, Accounting and Statistics (DGBAS) last month, which forecast GDP would grow 3.9 percent this year.
Photo: CNA
In addition to a strong export performance, the local economy is also boosted by an increase in private investment and private consumption, the central bank said.
However, due to a relatively high comparison base last year, the economy would grow 1.99 percent in the second half of this year after a 5.83 percent increase in the first half, it said.
The central bank also raised its forecast for consumer price index (CPI) growth from 2.12 percent in June to 2.16 percent, while it lowered its forecast for growth in core CPI, which excludes fruit, vegetables and energy to 1.94 percent, below the 2 percent alert set by the bank.
Since June, bad weather has adversely impacted agricultural supplies and pushed up the price of fruit and vegetables so the central bank raised its CPI growth forecast, but core CPI growth will continue its downtrend, with fruit and vegetables excluded, it said.
For next year, the central bank said exports and private investment are expected to continue to grow and with momentum in private consumption on the rise, the economy is expected to grow steadily at 3.08 percent.
In the policymaking meeting, the central bank also decided to leave its key interest rates unchanged for the second consecutive quarter despite a 50 basis point cut by the US Federal Reserve overnight.
After the decision, the discount rate remains at 2 percent which is still the highest in 15 years, with the rate on accommodation with collateral at 2.375 percent, and the rate on accommodations without collateral at 4.250 percent.
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