Taiwan says economy may grow 5% this year as exports boom

[TAIPEI] Taiwan's economy may grow about 5 per cent this year, the head of the statistics office said on Wednesday, offering an even rosier forecast than his own office made last month on the back of the tech-powerhouse's booming exports.

Taiwan's economy would grow at its fastest pace in seven years in 2021, the statistics office said in February, upgrading its economic outlook as a strong rebound in exports and demand for chips helps the island shake off the blow from the coronavirus crisis.

Gross domestic product was expected to expand 4.64 per cent this year, the Directorate General of Budget, Accounting and Statistics said, up from a forecast made in November for 3.83 per cent growth.

But its head, Chu Tzer-ming, told Parliament that there was a possibility growth may in fact reach 5 per cent this year.

Taiwan's exports surged last year to US$345.28 billion, a record high by value for a single year, driven by global demand for laptops, tablets, smartphones and other gadgets to support the work-from-home trend during the pandemic.

The Finance Ministry on Tuesday said it expected exports to grow at a good clip in both the first and second quarters, helped by chip demand.

REUTERS