2024 GDP forecast raised to 3.43%

By ECCT staff writers, DGBAS

The Directorate General of Budget Accounting and Statistics has raised Taiwan 2024 GDP forecast to 3.43%. Based on expectations that the global economy is expected to grow at a moderate pace, overcoming the impact of reduced demand due to high policy rates and inventory adjustments, the DGBAS expects Taiwan’s real private consumption to grow by 2.64% in 2024, mainly driven by the improving labour market and the wealth effect stemming from the rising stock market. Growth is also expected to benefit from the recovering outbound tourism, which is approaching pre-pandemic levels. In addition, real private fixed capital formation is anticipated to increase by 1.45%, supported by ongoing investments in R&D and production process improvement to cope with digital transformation and net zero emissions. Moreover, expansion of airline fleets to meet the increasing demand for overseas travel and freight, along with sustained investments in solar and offshore wind energy, will further contribute to Taiwan’s investment growth. Combining the above components as well as the public sector, Taiwan’s real GDP is projected to grow by 3.43% in 2024, revised upward by 0.08 percentage points from the previous forecast. According to the DGBAS, the Consumer price Index (CPI) is expected to increase by 1.85% in 2024, revised upward by 0.21 percentage points, mainly reflecting the lasting price rises in food away from home and residential rent.