The Taiwan Ratings Corp. (TRC) recently announced a forecast that Taiwan will see a 2 percent growth in its gross domestic product (GDP) in 2017 and a 2.5 percent rise in 2018. TRC expects Taiwan’s economic growth to jump from 0.9 percent in 2016 to the levels forecast by the agency’s parent company, Standard & Poor’s International.
According to the agency’s 2017 Taiwan Credit Outlook report, Taiwan’s 2 percent GDP growth for this year will be slightly higher than the 1.7 percent predicted for Hong Kong, and the 1.3 percent for Singapore. In the report, South Korea is expected to achieve a GDP growth of 2.7 percent in 2017, higher than Taiwan, Hong Kong, and Singapore. Also, 2018 will see GDP growths of 2.9 percent in South Korea, 2.5 percent in Taiwan, 2.0 percent in Hong Kong and 2.0 percent in Singapore, according to S&P’s rating.
TRC credit analyst Lan Yu-han said Taiwan’s economic development will benefit from the gradual recovery of the U.S. economy in the coming years, as well as economic stability in the emerging countries. The two factors are expected to help boost Taiwan’s exports in the near future, Lan said. However, the growth momentum might be slow in the first few months of this year due to a slow recovery in mainland China and Europe and increasing competition from other exporters, Lan said.
Source: Focus Taiwan