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Taiwan's economic growth forecast for 2018 raised to 2.68 percent

2018/06/21 22:34:40

Taipei, June 21 (CNA) The central bank on Thursday adjusted its economic growth forecast for Taiwan this year from 2.58 percent to 2.68 percent, on the back of a recovering local economy and stable labor market.

The increase was due to a better than expected economic performance in the last quarter, the central bank said.

Exports have risen since the beginning of the year and that, combined with strong consumer confidence and a stable labor market, contributed to the increased annual economic growth forecast, according to the central bank.

Although the new pension system for military veterans, which goes into effect July 1, may have a moderate impact on consumer consumption, the central bank said it believes confidence will remain high amid increasing employment, coupled with rising salaries on the labor market.

Taiwan's economy is projected to grow at a rate of 2.3 percent in the second half of the year thanks to increasing local investments, the bank said.

Taking into account the recent increase in international crude oil prices, the central bank has also revised upwards its forecast for CPI inflation to 1.40 percent for the year, while the forecast for core CPI has been revised downwards to 1.16 percent as a result of reductions in telecommunication rates.

(By Chiu Po-sheng and Ko Lin)