IMF raises Taiwan's GDP growth forecast for 2020
By ECCT staff writers
The International Monetary Fund (IMF) raised its forecast for Taiwan's gross domestic product (GDP) for 2020, on the grounds that Taiwan is performing better than most other countries at dealing with the health and economic impact of the Covid-19 pandemic.
According to the IMF, Taiwan's GDP growth for 2020 is expected to reach zero, which is a significant upgrade from its forecast of a 4% contraction made by the organization in April.
However, government officials in Taiwan say the forecast is overly pessimistic. According to a report on CNA, Kung Ming-hsin, minister of the National Development Council (NDC), said Taiwan's economic strength has been undervalued by the IMF despite the upgrade.
Taiwan’s Directorate General of Budget, Accounting and Statistics (DGBAS) most recent GDP forecast for Taiwan is 1.56% for 2020 and 3.92% for 2021.
Citing data released by the DGBAS, Kung said Taiwan's economy grew 0.78% in the first half of this year and momentum accelerated in the third quarter on the back of an increase in industrial production and exports, as well as improvements in retail sales and the food/beverage sector.
In addition to Taiwan's superior efforts in combating the Covid-19 pandemic, Kung said, government stimulus measures have also served as a driver to economic growth.
Kung added that the local electronics sector has also benefited from the globally booming "stay at home economy", which has boosted demand for tech devices, much to Taiwan's advantage.
According to the IMF, the global economy is expected to contract by 4.4% in 2020, compared with an earlier forecast of a 4.9% contraction. In 2021, the IMF said, the world's economy is expected to grow 5.2%.