Min­is­ter claims fourth quar­ter will see econ­omy start grow­ing

The China Post - - LOCAL - BY JOHN LIU

The econ­omy will start climb­ing up in the fourth quar­ter and see no­table im­prove­ment in the first and sec­ond quar­ters of next year, Na­tional De­vel­op­ment Coun­cil (NDC, ) Min­is­ter Duh Tyz­zjiun ( ) said yesterday amid re­ports of Tai­wan’s gloomy eco­nomic out­look.

Gov­ern­ment comptroller the Di­rec­torate Gen­eral of Bud­get, Ac­count­ing and Sta­tis­tics ( ) on Fri­day slashed the 2015 GDP forecast to mere 1.56 per­cent.

The drop in eco­nomic growth was mainly the re­sult of ex­port declines, the NDC head said, adding that the worse-than-ex­pected eco­nomic re­cov­ery seen in Western coun­tries also plays a role.

The econ­omy will de­cline into the third quar­ter be­fore it rises again in the fourth quar­ter, Duh pre­dicted.

The NDC head made the re­marks in a media in­ter­view while at­tend­ing a Chi­nese Na­tional As­so­ci­a­tion of In­dus­try and Com­merce ( ) lun­cheon yesterday.

An ad­just­ment in ex­ported prod­uct cat­e­gories is needed in or­der to im­prove Tai­wan’s ex­port per­for­mance, Duh said.

In­for­ma­tion and com­mu­ni­ca­tion tech­nol­ogy (ICT) prod­ucts ac­count for a large por­tion of Tai­wan’s ex­ports. How­ever, new phones’ slow sales have af­fected ex­ports of chips, parts and com­po­nents, and pro­cess­ing ma­chine tools, Duh noted.

A high de­gree of con­cen­tra­tion on some ex­port mar­kets, espe- cially China, also has an ad­verse im­pact on ex­ports, ac­cord­ing to Duh.

Up to 39 per­cent of Tai­wan’s ex­ports go to China, down from 41 per­cent in the past. The gov­ern­ment in­tends to fur­ther di­ver­sify Tai­wan’s ex­ports in the fu­ture, Duh said.

The Cab­i­net is also in the process of de­vis­ing short-, medi­u­mand long- term mea­sures, Duh added.

For­eign Or­ders May Di­min­ish

for the Fourth Month

The Min­istry of Eco­nomic Af­fairs (MOEA, ) is set to re­lease the for­eign or­ders re­port for July on Thurs­day.

In the midst of a global slow­down and weak­ened de­mand, and given the high amount recorded last July (US$38.18 bil­lion), many ex­pect for­eign or­ders will stum­ble for the four con­sec­u­tive month.

Less de­mand for com­put­ers and hand-held de­vices has con­trib­uted to fewer or­ders for elec­tron­ics and ICT prod­ucts. As oil prices fell, Tai­wan’s ex­ports also logged neg­a­tive growth for six months.

On a pos­i­tive note, as global brands un­veil new prod­ucts and with the ap­proach of the win­ter shop­ping sea­son, the MOEA projects for­eign or­ders in the sec­ond half of the year will ex­ceed those in the first half.

There are also ad­verse fac­tors, in­clud­ing emerg­ing economies’ slug­gish growth, China’s beef­ing up lo­cal sup­ply chains, in­tense global com­pe­ti­tion, and re­duced oil and steel prices, the MOEA said.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.