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Taiwan's Manufacturers More Upbeat on Economic Outlook

Source: Taiwantrade | Updated: 11 February 2011

TIER President David Hong also predicted that Taiwan's real gross domestic product would grow 5.71 percent in 2011 to NT$14.96 trillion (US$50 billion) from an estimated NT$14.15 trillion (US$47.1 billion) last year.

According to results of the survey released on January 25, 41.5 percent of the manufacturers surveyed held a positive view of the economy's prospects, compared to 29.4 percent who felt that way in November.

Nearly half (49.2 percent) felt the economy would remain the same over the next six months and 9.3 percent felt Taiwan's economic prospects would become worse, both lower than the 59 percent and 11.6 percent, respectively, who held those views in November, the survey found.

Chen Miao, director of TIER's macroeconomics forecasting center, said that although the first three months of the year are traditionally the slowest season for sales, market inventories of manufacturers have fallen because of anticipated strong demand over the 2011 Lunar New Year holiday.

"Manufacturers also believe that emerging markets will still show strong demand for new electronic products in the next six months," he said.

As for the 5.7 percent growth this year, the forecast is higher than the 5 percent growth projected by the World Bank and higher than the 4.8 percent growth estimated by international think tank Global Insight.

The growth will be driven partly by private consumption, which is forecast to grow 3.45 percent this year, because increasing numbers of Chinese tourists are expected to boost local retail sales, leading to more job openings in the service industry, Hong said.

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