Taipei, Dec. 18, 2012 (CENS)--The Cabinet-level Council for Economic Planning and Development (CEPD) has approved Taiwan's economic GDP growth rate target for 2013 at a high mark of 3.8%, as well as the target of keeping consumer price index (CPI) under 2%. The CEPD noted that due to the uncertain factors shadowing the global economy in 2013, private investments will play a critical role in achieving the growth target.
Tseng Ju-hsueh, director of the general planning department of the CEPD, pointed out that the government has launched a number of aggressive policies to achieve the economic-growth target, such as the "golden 10-year plan," "economic power-up plan," and "program for pushing Taiwanese enterprises to return to Taiwan for investments," which were put into practice not long ago. In addition, the CEPD is about to come up with the "free-economy exemplary zone," which is also expected to induce a wave of investments, according to Tseng.
The CEPD publicized the "national development plan, 2013-2016" yesterday, which incorporates the "golden 10-year vision" of President Ma Ying-jeou and calls for the achievement of 3.8% GDP growth target for 2013, enhancing per capita GDP to US$21,412. The four-year plan sets the target of achieving 4.5% GDP growth on average in the next four years, resuming the medium growth rates of 4-5% in past years.
Tseng Ju-hsueh remarked that the growth target is challenging but achievable, adding that "unlike the economic forecast of the Directorate General of Budget, Accounting, and Statistics, economic-growth target is meant to spur the government's effort and therefore should be set at a proper level, neither unrealistically high nor pessimistically low." According to the growth target, after deducting the 3.8% growth for 2013, the average growth should top 4.7% during the three years of 2014-2016.
The economic development plan aims to dampen unemployment rate to 4.1% in 2013, down from 4.24% in the first 11 months of 2012, and further to 3.9% by 2016.
Tseng Ju-hsueh pointed out that in view of the persistent uncertainties for the global economy, such as the U.S. fiscal cliff and the European-debt crisis, the achievement of 3.8% growth target for 2013 will hinge on private investments, rather than exports, government outlays, or private consumption.
The CEPD remarked that to attain the 3.8% growth target, private investments should grow at least 10% in 2013, much higher than the predicted 5.51% growth in private investments put forth by the DGBAS.
(by Philip Liu)
