TAIPEI — Taiwan’s Directorate-General of Budget, Accounting and Statistics has raised the official national growth forecast in the light of robust global demand for mobile devices and computer components, stronger consumer confidence and increased fixed investment.
The directorate-general announced on Friday that Taiwan’s gross domestic product in 2014 should expand 3.41% — significantly up from the 2.98% it estimated in May.
According to the report, Taiwan’s economy grew 3.24% on year in the first quarter, an improvement on the 3.14% expected. The estimate for the second-quarter was 3.74%. Officials predict the export-reliant economy will grow 3.51% in 2015.
The directorate-general said Taiwan’s semiconductor companies are benefiting from market-leading technologies and rising demand for mobile devices, while manufacturers of electronic components are securing new business as consumers upgrade personal computers.
“These factors will help with Taiwan’s exports,” the directorate-general said. “As businesses are making a bigger profit, they are more willing to recruit new hires and give raises.” It said this is boosting consumer confidence and will lift domestic consumption by 2.6% this year.
Mobile carriers are meanwhile installing infrastructure to support fourth-generation (4G) services and local airlines are expanding their fleets. Such developments will contribute to fixed investment growth of 4.8% in 2014 compared to last year.
The latest figures are regarded as a surer sign of economic recovery following some sluggish years. Taiwan’s economy grew only 1.48% in 2012 and 2.09% last year. The global appetite for smartphones has contributed significantly to the upturn. Indeed, analysts expect that the tech sector, a pillar of the economy, will enjoy a strong second half as parts for Apple’s new iPhone 6 are shipped.
