Taiwan Forecast to Grow 2.42%

Taiwan’s real gross domestic product is predicted to grow by an annual 2.42% in 2018 due to stable economic growth, a minimum wage hike and a salary increase for public sector employees, according to a report compiled by the Directorate General of Budget, Accounting and Statistics.

The report has already been submitted to the Legislature and on Monday DGBAS head Chu Tzer-ming will summarize its findings and answer questions from members of the Legislative Yuan’s Finance Committee, CNA reported.

The report notes that based on forecasts from London-based information company IHS Markit Ltd. and the International Monetary Fund, global economic growth will rise from 3.35 to 4.6% this year. The improvement in foreign demand is expected to continue and help boost Taiwan’s growth. However, with the relatively high comparison base, the pace of GDP growth is forecast to slow.

In terms of domestic demand, the steady growth of the domestic economy, improving job market, hike in basic wages and salary increases for public sector employees and some private enterprises workers mean the consumer market can expect a boost, according to the report.

In addition, expanded investment by leading semiconductor companies in next-generation advanced process technologies and the government’s introduction of programs for the development of innovative industries will help bolster investment in the country.