Taiwan Economy to Grow 2%

Taiwan’s GDP can grow by 2% this year, as the export-oriented economy should benefit from a continued recovery in the US and a gradual stabilization in emerging markets, S&P Global Ratings said, CNA reported. The S&P forecast is better than the government’s estimate of 1.87% growth and last year’s 1.35%. “Taiwanese firms are poised to benefit from a continued recovery in the US economy and a gradual stabilization in emerging markets,” said Taiwan Ratings Corp., the local arm of the international ratings agency. Many local technology firms supply critical components for smartphones, tablets, laptops and other consumer electronics. The improving economic scene would allow Taiwanese firms to maintain stable credit profiles even though the pace of recovery is uneven for different sectors and risks stir underneath, credit analyst Lan Yuhan said. Foreign currency rates pose a challenge for exporters, after the US Federal Reserve voiced plans to raise interest rates three times this year, Lan said.