Region:
Asia
Category:
Economy
Article type:
Informed

IMF considers Taiwan to grow above the world average

Region:
Asia
Category:
Economy
Article type:
Informed
Author/s:
By Pablo Pla
Publication date:
Print article

Kao Shi En-que, vice minister of the National Development Council, attributes the success largely to continued investment by the semiconductor and providers of local mobile sector

The International Monetary Fund (IMF) expects GDP of Taiwan grow 3.8 percent in 2015 and 4.1 percent in 2016; higher than the world average of 3.5 percent and 3.8 percent for those years, respectively.

The country's consumer prices rise 0.7 percent and 1.3 percent, while unemployment will remain stable at 4 percent for both years. These growth projections were published in the latest IMF World Economic Report. They predict a better growth for Taiwan, Hong Kong compared with 2.8 and 3.1 percent; Singapore, 3 percent for both years; and South Korea with 3.3 and 3.5 percent.

Meanwhile, Kao Shien-que, vice minister of the National Development Council, attributed the success largely to continued investment by the semiconductor and providers of local mobile sector.

"The robust consumption driven by weak international oil prices and a growing number of tourists from abroad have also played a role in this encouraging performance," said Kao.

The IMF forecast is based on data from the Directorate General of Budget, Accounting and Statistics, which show that the per capita GDP of Taiwan will reach 3.78 percent this year, reaching US $ 22,823. Consumption and private sector investment will increase 3.12 and 5.98 percent, respectively, during that period.

According to the IMF, it is expected that advanced economies have a strong performance in 2015, while emerging markets and low-income will become slower. This is due to decreased productivity, large fluctuations in exchange rates, the effects of the financial crisis and the euro zone; and the weakness of international oil prices.

traslation: Belén Zapata