BackTaiwan raises 2021 GDP outlook amid global scramble for chips
GDP will likely expand 4.64% in 2021, the statistics bureau said SaturdayTaiwanese growth has been fueled by booming global demand for semiconductors
PremiumTaiwan raised its forecast for growth this year as a global shortage of semiconductors sparks an international competition to secure access to the island’s technology.
Gross domestic product will likely expand 4.64% in 2021, the statistics bureau said Saturday, compared to its most recent forecast of 3.83% made late last year. Officials also revised fourth-quarter GDP higher to 5.09%.
While Taiwan’s projected growth for this year lags behind the global average of 5.4%, according to a Bloomberg survey of economists, it is coming off a higher base after having been one of the few significant economies to register an expansion last year.
Taiwanese growth has been fueled by booming global demand for semiconductors.
US President Joe Biden’s top economic adviser, Brian Deese, earlier this week sought the Taiwanese government’s help resolving the shortage that is hindering U.S. automotive manufacturing. His appeal follows earlier pleas from Japanese and European officials for Taiwan’s help in ensuring supply. The world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., plans to increase capital expenditure this year to as much as $28 billion to help address the shortage.
Taiwan’s economic outlook has also been bolstered by its largely successful handling of Covid-19. The island has registered just nine deaths and fewer than 1,000 cases since the beginning of the pandemic.
This allowed it to avoid the strict lockdowns that brought many other economies to a halt. With a few exceptions, Taiwanese businesses, offices and schools stayed open throughout the year, and there was something of a boom in domestic travel as people opted to vacation at home rather than head overseas.
However, Taiwan has so far struggled to secure enough vaccines to inoculate its more than 23 million people. Health officials say vaccinations will likely only start in June, leaving the island facing the possibility of being left behind as business and travel elsewhere bounce back from the pandemic.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
