Taiwan’s economic growth for 2011 is projected at 4.51 percent, down 0.05 percentage points from the October estimate, while gross domestic product per capita is expected to reach US$20,246, according to the Directorate-General of Budget, Accounting and Statistics (DGBAS) on Nov. 24.
The DGBAS also revised its economic growth forecast for 2012 downward 0.19 percentage points to 4.19 percent, with per capita GDP at US$20,472. The agency said the economy expanded 3.42 percent in the third quarter, while it is expected to grow 3.69 percent in the fourth, a 1.02-percentage-points drop from its October forecast. “Taiwan relies on exports to drive economic growth. When the global business climate worsens, Taiwan is impacted to a certain degree,” DGBAS officials said.
The DGBAS estimate for next year is partly based on data provided by IHS Global Insight, an international market intelligence organization. In its latest report the organization cut its global economic growth forecast for 2012 by 0.7 percentage points to 2.9 percent, due to the debt crisis in the EU and United States. The DGBAS said that although worldwide market demand for consumer electronics is expected to help boost orders for local high-tech manufacturers in the coming year, investment in some industries such as solar energy and photonics seems to be slowing down. Total private investment in fixed assets from July to September decreased 11.9 percent, while public expenditure fell 7.11 percent compared to the same period last year, according to the DGBAS.
Presidential Office spokesman Fan Chiang Tai-chi said President Ma Ying-jeou, noticing the downtrend, has instructed the Cabinet to publicly explain all short-, mid- and long-term economic policies by the end of the month, to bolster public confidence.