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《TAIPEI TIMES》 GDP growth goal of 3.5 percent achievable: NDC

National Development Council Deputy Minister Kao Shien-quey speaks at a news conference in Taipei following a Cabinet meeting yesterday.
Photo: CNA

National Development Council Deputy Minister Kao Shien-quey speaks at a news conference in Taipei following a Cabinet meeting yesterday. Photo: CNA

2024/05/24 03:00

By Crystal Hsu / Staff reporter

Taiwan’s aim of a 3.5 percent GDP growth this year looks increasingly achievable, given that exports have been expanding for six months straight and are expected to gain better traction ahead, the National Development Council (NDC) said yesterday.

“The chance of meeting the target is picking up in light of improving exports and healthy domestic demand,” NDC Deputy Minister Kao Shien-quey (高仙桂) said.

Kao made the remarks during a media briefing after the first Cabinet meeting headed by Premier Cho Jung-tai (卓榮泰).

The council is looking at a GDP growth of 3.33 to 3.46 percent for this year, much faster than the 1.31 percent last year, the ministry’s report said.

The Directorate-General of Budget, Accounting and Statistics is to update its forecast on Thursday next week.

Exports in the first quarter expanded by 12.9 percent, substantially higher than the government’s predicted 8.36 percent increase in February.

Private consumption has remained sturdy two years after the lifting of COVID-19-related restrictions, the report said.

The council would coordinate with different government ministries and departments to realize the growth potential, NDC research director Wu Ming-huei (吳明蕙) said.

The impressive showings were due to insatiable demand from the US for electronics used in artificial intelligence (AI) infrastructure and applications, Wu added.

Nvidia Corp yesterday released record high quarterly revenue of US$26.0 billion, up by 18 percent from the previous quarter and 262 percent from a year ago.

Nvidia also posted record high quarterly data center revenue of US$22.6 billion, up 23 percent from three months earlier and 427 percent from a year ago.

Taiwanese tech firms supply advanced chips, high-end servers, storage and memory chips for the US-based technology giant.

While Taiwan’s tech sectors have benefitted from the AI boom, non-tech sectors have not yet come out of a business slowdown induced by stubborn global inflation, tight monetary practices and inventory gluts, Wu said.

The government would help struggling firms to boost competitiveness, diversify income resources and expand export markets, she said.

Wu added that the government would be pouring funds to shore up strategic semiconductor, AI, military industry, security monitoring and next-generation communications sectors.

Taiwan also has to cope with external challenges that would affect its pursuit of a 3.5 percent growth, such as the timing of interest rate cuts by major economies, potential economic slowdown in China and geopolitical tensions, Wu said.

The government has put in place price stabilizing measures in case of imported inflation and would introduce stimulus measures to invigorate tourism in eastern Taiwan, which had been hit hard by the April 3 earthquake, which measured 7.2 on the Richter scale, Wu said.

新聞來源:TAIPEI TIMES

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