The Asian Development Bank (ADB) projected Taiwan’s economy would grow 7.6 percent this year, as surging demand for advanced semiconductors underpins the nation’s technology exports and investments despite higher energy prices amid the Middle East conflict.
The figure was up 3.6 percentage points from the ADB’s previous estimate in December last year, and marked the largest growth among advanced economies in Asia and the Pacific region, the bank’s Asian Development Outlook report released on April 10 showed.
The advanced economies in Asia and the Pacific comprise Taiwan, Hong Kong, Singapore, Japan, South Korea, Australia and New Zealand, the Manila-based bank said.
Photo: Ritchie B. Tongo, EPA
Singapore is projected to expand by 3 percent this year, followed by Hong Kong at 2.6 percent, Australia at 2 percent, South Korea and New Zealand at 1.9 percent, and Japan at 0.7 percent, the report showed.
“Despite geopolitical shocks this year, growth will likely remain tech-driven and robust, as the global artificial intelligence [AI] boom continues and domestic demand picks up,” the ADB said.
The Middle East conflict should not significantly dent global semiconductor sales, which are projected to grow 26 percent this year, the bank said, citing World Semiconductor Trade Statistics.
Meanwhile, uniform US tariffs of 10 to 15 percent on Taiwanese goods would position the economy more favorably than its major trading rivals, benefiting from its traditional, non-tech sectors and boosting overall exports, it said.
Improving consumer confidence, continued fiscal support for households and minimum wage increases would also help raise consumer spending, the bank said.
Healthy exports and consumption would support investment in plant and equipment, as well as the restocking of depleted inventories, it added.
The ADB’s projected growth for Taiwan this year aligned with the Directorate-General of Budget, Accounting and Statistics’ estimate of 7.71 percent, and the central bank’s forecast of 7.28 percent.
It projected the economy to grow 4 percent next year, assuming AI-related demand growth moderates.
“For the medium term and beyond, sustaining growth momentum hinges on resolving demographic constraints and strengthening non-tech productivity,” the ADB said.
Taiwan’s headline inflation is projected to edge up to 1.8 percent this year and to 1.5 percent next year, the bank said.
The ADB said its projections were made under the scenario of an early stabilization in the Middle East conflict.
A prolonged conflict would disrupt export production, raise inflation, and reduce consumer and business confidence, as the economy is almost wholly dependent on imported fuel, the bank added.
‘NO SECURITY RISK’: The Railway Bureau reassured the public that the technicians’ activities were limited to technical guidance and did not involve sensitive systems The Railway Bureau yesterday said it had invited eight Chinese technicians to assist with an airport MRT construction project. The bureau issued the confirmation after an Internet user said Chinese nationals had entered the construction zone of Taiwan Taoyuan International Airport’s Terminal 3 project. They asked why “individuals from an enemy state” were allowed access to such a major national infrastructure project, which raised serious concerns over Taiwan’s industrial safety, sensitive systems and information security. The bureau’s Northern Region Engineering Branch Office said subcontractor Taiwan Handle Industrial Co (台灣手把工業) of the Taoyuan airport MRT’s “Contract No. CU05 Project A14 Station Civil, MEP &
The National Chungshan Institute of Science and Technology yesterday showcased its locally developed variants of the Vision 60 robotic patrol dog, which it plans to deploy on the nation’s outlying territories in the South China Sea. The variants were produced under the Joint Lab project — created by the institute and domestic companies — and assembled with domestically produced motors, lenses and artificial intelligence (AI) systems alongside licensed tech from the US, Missile and Rocket Systems Research Division deputy director Jen Kuo-kang (任國光) told the media event at a military base in Taipei’s Dazhi (大直) area. Taiwan has built up its strengths
TIT-FOR-TAT: The US allegedly revoked the visa of a Chinese national working at Xinhua News Agency in the US in response to Beijing’s expulsion of Vivian Wang The Presidential Office yesterday condemned China for expelling a New York Times correspondent from Beijing following the newspaper’s interview with President William Lai (賴清德), saying the move highlighted Beijing’s suppression of press freedom and its threat to international news media. Taiwan has noted a series of recent incidents in which Beijing used similar tactics to “threaten and pressure international media outlets and journalists,” Presidential Office spokeswoman Karen Kuo (郭雅慧) said in a statement. “This concerns not only press freedom and freedom of expression, but also the safety of journalists, and Taiwan and relevant partners are paying close attention to the situation,” she
NOT IMMEDIATE: Taiwan has a chance to appeal the proposed 10 percent tariff before it starts, while other countries face a 12.5 percent tariff from the trade office Taiwan is among 60 economies determined by the US to have failed to impose or enforce a ban on the importation of goods produced with forced labor, according to a notice released on Tuesday by the Office of the US Trade Representative (USTR), which proposed imposing an additional 10 percent or more tariff on them. The USTR in a statement said that following an investigation, it had determined under Section 301 of the Trade Act of 1974 that the failure of the 60 economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is
RSS