Taipei--The Taiwan Institute of Economic Research (TIER) on Tuesday raised its forecast for Taiwan's real gross domestic product (GDP) growth in 2017 to 2.08 percent because the global economy appears to be recovering faster than previously expected.
The new estimate was 0.04 percentage points higher than its previous forecast in April, TIER officials said when presenting a report on economic activity in July in a news conference.
The TIER, one of the country's leading economic think tanks, said the global economy was experiencing a moderate recovery, reflected in part by the 0.1-percentage-point upward revision in first quarter U.S. GDP growth because of increases in consumption and exports.
China also reported better-than-expected economic growth in the first half of the year, and its purchasing managers' index (PMI) has risen 11 consecutive months, while in Japan the central bank has raised its economic growth forecast slightly, the TIER said.
In its report, the think tank projected 1.95 percent growth for domestic demand in 2017, up 0.02 percentage points from its forecast in April.
It also expected fixed capital formation to grow 2.40 percent in 2017, up 0.20 percentage points from its previous forecast in April, and its projection for private investment growth was adjusted 0.03 percentage points higher to 2.15 percent, according the report.
In terms of trade, the TIER raised its forecast for growth in the value of Taiwan's exports and imports in 2017 by 0.21 and 0.08 percentage points, respectively, to 8.40 percent and 9.60 percent, reflecting the global economic recovery.
TIER also predicted the consumption price index (CPI) to rise 1.05 percent this year, down from its April forecast by 0.15 percentage points.
Source: Focus Taiwan News Channel