Taiwan sees economy growing this year at best pace in a decade

Taiwan's economy will grow at its fastest pace in more than a decade in 2021, the statistics office said on Friday, upgrading its outlook on an expected strong performance in exports for the tech heavyweight island, though supply chain issues could weigh.

The revision came as the statistics office nudged up its export growth forecast for this year, with global demand for the island's technology products buoyed by 5G, electric vehicles and high end computing.

Gross domestic product (GDP) is expected to rise 6.09 per cent this year, the fastest pace since it expanded 10.25 per cent in 2010, the Directorate General of Budget, Accounting and Statistics said, and up from a growth forecast of 5.88 per cent made in August.

For 2022, the office said it saw GDP growth reaching 4.15 per cent, up from 3.69 per cent predicted in August.

The directorate's deputy head Tsai Hung-kun said supply chain problems would impact exports in the fourth quarter, but trade growth and domestic consumption would help buoy the economy next year.

"External demand for next year is not looking bad," Tsai added.

His office said it saw exports this year rising 28.88 per cent from 2020, up slightly from the previous prediction of 28.15 per cent, while for next year it saw exports up 6.14 per cent, from 5.22 per cent seen before.

– Reuters