Taiwan state-run institute: “Growth to reach 12.16% this year, highest in 39 years”

[Financial News] Taiwan’s economic growth is expected to reach 12.16% this year, the highest in 39 years, a state-run research institute has forecast.
The Chung-Hua Institution for Economic Research (CIER) said on the 16th that Taiwan’s economy is expected to post the same growth rate this year, its highest since 1987, buoyed by strong performance in both domestic demand and exports.
CIER raised its growth forecast by 1.81 percentage points, from 10.35% in July to 12.16%. This would be the highest rate in 39 years, since 1987, when growth reached 12.75%.
Growth this year is estimated at 12.73% in the third quarter and is forecast to fall to 8.20% in the fourth quarter because of the base effect from the same period a year earlier.
Taiwan’s economy grew 15.43% in the first quarter and 12.93% in the second quarter of this year.
Domestic demand is expected to account for 55% of overall economic growth, while net exports—exports minus imports—are expected to contribute 45%.
The growth forecast appears to have been raised as domestic demand is assessed to be growing more strongly than initially expected.
CIER said much of the growth was being driven by strong demand related to artificial intelligence (AI), which is supporting robust export growth as well as increased investment and consumer spending.
CIER Director Lien Hsien-ming told local Taiwanese media, “This year has been one in which both domestic demand and external demand have performed very well.”
He explained that Taiwanese manufacturers are expanding production capacity as global cloud service providers continue to increase capital investment.
CIER forecast that private investment would rise 10.77% and private consumption 4.94%. 

[email protected] Lee Seok-woo, International Affairs Specialist Reporter