ANZ lifts Taiwan growth forecast to 6% for 2021
TAIPEI - ANZ Bank has revised upwards its GDP growth forecasts for Taiwan to 6.0% in 2021 and 3.8% in 2022, thanks to strong investment (27.97% y/y) during the third quarter.
ANZ says Taiwan's export outlook remains positive and will continue to support capital investment in Q4. In Q3, exports contributed 8.33% to GDP on a year-on-year basis.
Taiwan's tech-oriented economy is expected to benefit from new capital expenditures and product life cycles, it says.
"Negative real interest rates will become a topic for policy discussion in Taiwan. As the US Fed is expected to announce its tapering plan in November and hike interest rate in H2 2022, we expect the CBC to raise interest rates in Q3 2022."