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Taiwan economy forecast to pick up in next 6 months

2012/05/16 23:07:53

Taipei, May 16 (CNA) Taiwan's current economic situation is "not satisfactory" but is expected to improve in the next six months, Germany's Ifo research institute said Wednesday.

Taiwan's exports, commodity prices, short-term and long-term interest rates, and the index of Taiwan Stock Exchange are expected to pick up in the second half of this year, according to the Ifo's World Economic Survey in the second quarter of the year.

Meanwhile, confidence in the world economy has improved for the second straight quarter, driven by rising expectations for growth, the quarterly survey said.

The survey's index that measures economic sentiment among 121 countries rose to 95 in the second quarter from 82.4 in the first quarter, Ifo said. However, the figure was still below the long-term average of 96.7, it said.

The index of current conditions of the world economy rose to 87.9 from 84.1 and the gauge of expectations jumped to 101.8 from 80.7, according to the survey.

In terms of regional sentiments, North America rose to 95.4 from 87.9 in the first quarter, while Western Europe climbed to 99.3 from 82.4.

Meanwhile, the second quarter sentiments in Asia jumped to 90.4 from 74.6 in the previous quarter, according to analysts.

Ifo said analysts have forecast global inflation of 3.6 percent on average this year, and expect long-term interest rates for the next six months to be slightly higher.

In terms of currency rates, analysts said the U.S. dollar may strengthen somewhat against the euro and the Japanese yen, according to the survey.

Taiwan's Council for Economic Planning and Development said the survey shows that the world economy will recover in the second half of the year, but added that the unstable political situations in the euro zone will continue to affect the global financial market.

(By Lin Hui-chun and Ann Chen)