With global economic growth momentum picking up in 2017, the production value of Taiwan's manufacturing sector is expected to grow about 1 percent this year, according to the government-sponsored Industrial Technology Research Institute's Industrial Economics and Knowledge Center (IEK, ??????????????).
The IEK said that on the back of improving global demand, which will boost Taiwan's export-oriented economy, the local manufacturing sector is expected to post NT$17.58 trillion (US$554 billion) in output in 2017, up NT$170 billion, or 1 percent, from a year earlier.
The IEK said that the latest forecast of the output of the local manufacturing sector came after Taiwan reported a rebound in outbound sales and an improvement in its composite economic indicators, which indicated that the local economy is growing at a quicker pace and that such a favorable development is expected to give a boost to the manufacturing sector.
In September, Taiwan's export orders grew 3.9 percent from a year earlier. That represented the second consecutive month of year-on-year growth on the back of the launch of Apple Inc.'s iPhones.
In August, the composite economic indicators rose two points from a month earlier to flash a green light, signaling stable growth pace.
The IEK said that the semiconductor business in Taiwan is expected to post more than NT$2.5 trillion in production output in 2017, up 3.5 percent-4.2 percent from a year earlier.
For the entire information electronics segment, output is expected to hit NT$6.46 trillion, up 2.05 percent from a year earlier, on the back of solid global demand for smartphones and flat panels, the IEK said. The group said that shipment declines in notebook computers and tablets are expected to moderate next year, helping the information electronics segment.
The IEK said that production value of the local chemical industry is expected to grow 1.23 percent to hit NT$4.29 trillion in 2017 due to stable crude oil prices. The IEK cited a report released by the International Monetary Fund as saying that crude oil prices could hover around US$50 per barrel next year, which is expected to stabilize the petrochemical market and help Taiwan's chemical industry.
However, the IEK said that growth of China's economy, the second- largest in the world, has been moderating, an unfavorable situation likely to affect outbound sales of Taiwan's petrochemical sector.
Output of the local metal and electrical industry for 2017 is expected to fall 0.6 percent from a year earlier to NT$4.58 trillion, with product prices showing signs of stabilizing, the IEK said.
The IEK said that the production value of the local medical equipment business for 2016 is expected to grow 7.2 percent-8.5 percent from a year earlier, marking the sixth consecutive year in which the industry's output will have grown more than 5 percent year-on-year.
Source: Focus Taiwan News Channel