Taiwan’s economy will remain on the growth track in 2020 despite a decelerating global trend, the Cabinet-level National Development Council said Jan. 16.
Citing forecasts by domestic and foreign research institutions, the NDC said the country’s gross domestic product is set to increase by between 2.23 percent and 2.72 percent this year.
During an NDC meeting attended by Central Bank Governor Yang Chin-long and other senior officials, NDC Minister Chen Mei-ling said a range of factors are contributing to this positive outlook.
These include increased home-bound investment by Taiwan firms engaging in smart manufacturing, new R&D and innovation centers set up by global corporate heavyweights such as Google and Microsoft Corp., and ongoing expansion of offshore wind power generation and 5G telecommunication facilities.
New projects promoting investment and regulatory amendments fostering innovation are also likely to play key roles in bolstering the economy and improving Taiwan’s business fundamentals, she added.
Yang was also positive on the country’s economic outlook. Citing estimates by the Cabinet-level Directorate General of Budget, Accounting and Statistics, Yang said domestic investments and government spending are expected to contribute 1.37 percentage points to economic growth this year.
While the phase one trade deal signed Jan. 15 by the U.S. and China will help mitigate tensions between the two sides, the NDC said uncertainties such as geopolitical friction, Brexit and the U.S. presidential election may still affect Taiwan’s export momentum.
The government is keeping a close eye on developments at home and abroad, the NDC said, adding it will spare no effort in its goal to achieve sustainable prosperity by transforming Taiwan into an advanced manufacturing and R&D hub.
Source: Taiwan Today (https://taiwantoday.tw/index.php)