Taiwan 2006 economic grows at 3.95 percent
(Xinhua)
Updated: 2006-07-27 09:44
Taiwan's economic growth this year will be 3.95 percent, less than the 4
percent figure bandied about earlier, according to a report reaching here from
Taipei Wednesday.
According to the prediction made by The Taiwan Institute of Economic Research
(TIER) in a report released Wednesday on its economic forecast for the overall
domestic economy, although Taiwan maintains growth in its exports, domestic
investment by the government and private sectors has been insufficient, leading
to sluggish domestic demand.
After reviewing related figures, the institute predicted that it will be
difficult to keep an economic growth of four percent.
The institute urged the government to improve the investment climate and
promote private consumption to improve economic development.
Halfway through 2006, the report said, the good side is that Taiwan's exports
will continue a steady increase because of stable growth in the United States,
Japan and Europe. The down side, however, is the impact of soaring oil prices.
The institute estimated that exports will be worth 219.4 billion new Taiwan
dollars (6.65 billion U.S. dollars) and imports will be worth 199.8 billion new
Taiwan dollars (6.05 billion U.S. dollars) this year, with the trade surplus
shrinking to 19.6 billion new Taiwan dollars (59.39 million U.S. dollars) from
26.4 billion new Taiwan dollars (80 million U.S. dollars) estimated in April.
Private consumption is expected to maintain the momentum of 2005 with the
continued improvement of the unemployment situation and stable consumer prices.
But the surging oil prices and persistent credit card debt problem, as well as
rising interest rates will also have negative impact on private consumption, and
it is estimated that private consumption growth this year will be only 2.31
percent.
The annual increase of the consumer price index is estimated at 1.88 percent,
mainly because of the hikes of electricity rates in the second half of the year.
World oil price is forecast at between 60 U.S. dollars and 65 U.S. dollars per
barrel this year, which is not too different from last year.
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