Institute raises Taiwan's growth forecast over 3% for 2014
Central News Agency
2014-06-17 10:21 PM
Taipei, June 17 (CNA) The Taiwan Research Institute (TRI) adjusted its forecast for Taiwan's economic growth for the whole of 2014 to 3.1 percent, up from the 2.81 percent it had previously predicted. The Taipei-based institute attributed the upward revision to an improving labor market, record low unemployment in recent years and the public's confidence that the economy is improving. In addition, general business turnover has registered positive growth for eight consecutive months since September last year, showing bright prospects for Taiwan's overall consumption, prompting the TRI to also raise its forecast for this year's real consumption growth to 2.53 percent from an earlier-predicted 1.82 percent. However, the TRI warned that amid the warming global economy since the beginning of this year, there have been signs of rising prices of international raw materials, which could push the consumer price index higher in the second half of this year. TRI founder Liu Tai-ying said that Taiwan will basically be able to maintain economic growth of more than 3 percent this year, while the economic outlook this year will be slightly brighter than last year. Similarly, Cathay Financial Holdings Co. adjusted its forecast for Taiwan's gross domestic product (GDP) growth this year to 3.29 percent, up slightly from a previous projection of 2.98 percent. Amid strong economic growth in Europe, a smooth economic recovery in the United States and stable economic performance in China, stronger foreign demand is likely to be a major driver for Taiwan's economic growth this year, the company said. In addition, improving domestic demand on the back of rising consumer confidence and better employment numbers will also boost economic growth this year, it said. (By Yang Su-min, Tien Yu-pin and Evelyn Kao)
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