Output of manufacturing sector forecast to rise by over 21% this year

The production value of Taiwan's manufacturing sector is expected to increase more than 21 percent from a year earlier in 2021 on the back of solid global demand, according to the government-supported Industrial Technology Research Institute (ITRI).

In its latest IEK Current Quarterly Model (IEKCQM) report, ITRI said the world's economy remained affected by factors such as the COVID-19 pandemic, an interruption in the global supply chain, a spike in raw material prices, rising inflationary pressure, and slower economic growth in China, but global demand remained solid, giving a boost to many export-oriented manufacturers in Taiwan.

The institution has forecast that the output of the local manufacturing sector will rise 21.26 percent to NT$23.06 trillion (US$823.6 billion), the second-highest in history. The estimate represented an upgrade from an earlier forecast of NT$20.92 trillion with expected growth of 10.03 percent made in June, according to ITRI.

ITRI said a strong export performance in the first nine months of this year served as a harbinger for the anticipated double-digit growth in the output of the manufacturing sector.

In the nine-month period, Taiwan's outbound sales in the wake of rising demand for both tech gadgets and old economy items rose 30.7 percent from a year earlier to US$117.2 billion.

For 2021, the output of the information and electronics industry is expected to hit NT$9.08 trillion, up 18.42 percent from a year earlier, on the debut of emerging technologies such as 5G applications, the Artificial Intelligence of Things (AIOT), and high-end semiconductor processes, the report showed.

The metal/mechanical industry is expected to see its output growing 22.70 percent from a year earlier to NT$6.31 trillion in 2021, while the chemical industry is expected to reach NT$4.94 trillion in production value, up 32.12 percent from a year earlier, the report indicated.

Meanwhile, the light industry sector, such as food and textile suppliers, is expected to generate NT$2.73 trillion in output in 2021, up 10.66 percent from a year earlier.

ITRI said with concerns over the pandemic expected to be assuaged further and border controls likely to be eased, business activities could improve in 2022.

The institution also said the government has come up with stimulus measures to boost domestic demand and expects that the output of the local manufacturing sector will continue to grow and hit NT$24.12 trillion, up 4.61 percent from a year earlier.

Source: Focus Taiwan News Channel