GDP growth to hit 21-year high

The DGBAS also estimated the island's GDP expansion rate for the second quarter at a high of 12.53 percent, representing an increase of 4.87 percentage points over the previous projection made in May.

DGBAS officials said this is the first time that Taiwan's GDP has recorded a positive growth for three consecutive quarters since the outbreak of the global financial tsunami in the third quarter of 2008. And for the second straight quarter, the nation's GDP has enjoyed a double-digit annual growth.

At a press conference held yesterday afternoon, the DGBAS also announced raising its forecast of the island's GDP expansion rate to 6.9 percent for the third quarter and 1.37 percent for the fourth quarter, slightly up from their respective projections issued by the DGBAS three months ago.

Tsai Hong-kun, director of the Third Bureau under the DGBAS, said given the facts that the island's economic growth has hit a high of 13.10 percent in the first half of the year, the growth of global economies has downed in the second half, and the comparison basis of the second half of last year is relatively higher than the first half, Taiwan's GDP growth for the second half of the year is projected at only 4.03 percent.

For the entire year of 2010, the island's GDP expansion rate is estimated at 8.24 percent, the highest figure of its kind since 1990, Tsai continued.

Of the four little dragons in Asia, Taiwan ranks second with annual GDP growth of 8.24 percent, next only to Singapore's projection of 13 to 15 percent, according to Tsai.

He also estimated Taiwan's economic growth for 2011 at 4.64 percent.

Tsai said that the island's export trade and private investment would expand steadily in the second half of the year, as leading international high-tech firms have expanded their outsourcing programs, releasing more contract production orders to domestic supplier of information technology and communications products.

DGBAS predicted Taiwan's exports to hit an all-time high of US$271.3 billion this year, exceeding the previous peak of US$255.6 billion recorded in 2008. The annual export growth will hit 33.23 percent, the highest growth rate if its kind seen since 1988.

The agency also estimated that aggregate private investments in Taiwan will top a high of NT$2 trillion, the highest level since 2004 and showing a substantive annual growth of 23.4 percent.

As to consumer price index, the DGBAS forecast a 1.23 percent growth for the index this year, down 0.07 of a percentage point from the previous projection. The CPI growth for 2011 is set at 1.43 percent.

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