Taiwan's top statistics agency has raised its forecast for the country's 2022 gross domestic product (GDP) growth to 4.42 percent, citing strong exports and increased investments.
In a report released Thursday, the Directorate General of Budget, Accounting and Statistics (DGBAS) upgraded Taiwan's GDP growth forecast by 0.27 percentage points, from its previous estimate in November 2021.
Adjusted CPI forecast
The DGBAS also revised its 2022 forecast for the domestic consumer price index (CPI), estimating a 1.93 percent increase, compared with a 1.96 percent rise forecast last year.
However, it projected the CPI growth for the first and second quarters of this year at 2.76 percent and 2.33 percent, respectively, both higher than the government's 2 percent inflation target.
Tsai Yu-tai (???), head of the DGBAS' Department of Statistics, said the high first-quarter CPI forecast was based on a huge spike in oil prices this year.
DGBAS Minister Chu Tzer-ming (???) said that the CPI growth is expected to be more moderate in the second quarter but it will remain above 2 percent before dropping gradually.
According to the DGBAS, its upgraded CPI forecast for 2022 was based on expected higher inflation, driven by soaring oil prices amid the current geopolitical tensions.
Exports
As for external trade, the DGBAS said Taiwan's real exports in 2022 are expected to grow 5.53 percent on the back of solid global demand for chips for tech gadgets and IoT products that require high computing power and 5G connection.
The DGBAS also forecast that private investment will grow 5.65 percent in 2022, as Taiwan's major semiconductor companies continue to boost capital expenditure to expand their production capacity.
Source: Focus Taiwan News Channel