The International Monetary Fund upgraded its economic growth forecast for Taiwan this year to 4.7%. The global economic growth is expected to expand 6% this year.
DBS Senior Economist Tieying Ma also upgraded Taiwan’s gross domestic product growth forecast for the second time since last December to 5% from 4.2%, owing to investment and export growth momentum.
Taiwan has seen about 6% gross domestic product growth in the first quarter of 2021, Tieying Ma predicts the momentum to continue into the second quarter and reach 7% gross domestic product growth, with a decline down to 3% by the second half of 2021.
The global economic growth is projected to expand 6% this year, coupled with a lifted forecast for China’s economic growth, which may create value from exporting trades for Taiwan.
Based on recent surging demands for semiconductors, Taiwan has large chip manufacturing capacities that would add to the economic growth. TSMC announcing to invest US$100 billion for the next three years before the holidays brought along international investments.