(Recasts, provides particulars)
* 2021 GDP estimate raised to +4.64%, vs earlier forecast +3.83%
* 2020 development revised as much as +3.11%, from +2.98%
* This autumn development revised as much as +5.09% y/y, from +4.94%
TAIPEI, Feb 20 (Reuters) – Taiwan’s financial system will develop at its quickest tempo in seven years in 2021, the statistics workplace stated, upgrading its financial outlook as a powerful rebound in exports and demand for chips helps the island shake off the blow from the coronavirus disaster.
Gross home product (GDP) is anticipated to develop 4.64% this 12 months, the Directorate Common of Funds, Accounting and Statistics stated on Saturday, up from a forecast made in November for 3.83% development, which might even have been its quickest since 2014.
The revision got here because the statistics workplace roughly doubled its export development forecast for this 12 months, with world demand for the island’s expertise merchandise buoyed by a work-from-home increase in the course of the COVID-19 pandemic.
GDP rose by a revised 5.09% within the fourth quarter from a 12 months earlier, the strongest quarterly development in a decade and up from a preliminary studying of 4.94%, the company added, as Taiwan’s financial system carried out higher than many regional friends.
It additionally revised up GDP for final 12 months to three.11%, from an preliminary 2.98%, the primary time Taiwan grew quicker than its big neighbour and largest buying and selling companion China in a full-year since 1990.
The company stated the COVID-19 pandemic has introduced robust world demand for electronics, due to the rising want for folks to work and research from house to scale back the chance of COVID-19 infections.
Taiwan’s semiconductor companies will proceed to develop investments at house to offer chips for 5G, automobiles and excessive pace computing, it added.
Consumption this 12 months is anticipated to develop 3.74%, the quickest tempo in 17 years, the division stated.
Taiwan has successfully managed the coronavirus with 943 infections thus far, the bulk imported, and solely 40 energetic circumstances being handled in hospital.
Whereas the island has not gone into whole lockdown to include the virus attributable to profitable measures that prevented its speedy unfold, Taiwan’s borders stay largely carefully.
Taiwan’s electronics exports are a bellwether of demand for world tech giants reminiscent of Apple Inc.
The statistics company forecast exports in 2021 would rise 9.58% in contrast with final 12 months, double a earlier prediction of 4.59%. (Reporting by Jeanny Kao and Ben Blanchard; Enhancing by Ana Nicolaci da Costa)