Taiwan's economy forecast to grow by more than 4% in 2021: NDC

Taipei, Feb. 17 (CNA) Taiwan's economy has a good chance of exceeding 4 percent annual growth this year if the country makes the most of opportunities presented by the restructuring of global supply chains in the wake of COVID-19 and attracts investment in major construction projects, the National Development Council (NDC) said Wednesday.

After vaccines become more widely available in the second half of 2021, the global economy is projected to recover from the COVID-19-induced recession. Businesses are expected to achieve explosive growth and global supply chain restructuring is expected to continue apace, boosting Taiwan's economic growth, the NDC said.

Although the Directorate-General of Budget, Accounting and Statistics (DGBAS) has forecast Taiwan's economy will grow by 3.83 percent in 2021, other organizations have predicted more than 4 percent growth, the NDC said, citing data published by several international financial institutions, including the International Monetary Fund and IHS Markit.

The NDC is upbeat about the domestic economy, saying that if Taiwan focuses on promoting industrial upgrading and attracting substantive investment from the private sector, economic growth could surpass 4 percent.

Taiwan is looking to take advantage of crucial opportunities in global supply chain restructuring to speed up industrial upgrading, encourage overseas Taiwanese businesses to invest at home and attract foreign investment in major public infrastructure projects, the NDC added.

Meanwhile, the government is set to introduce an amendment to the Insurance Act to relax restrictions on investment in the insurance industry.

In addition, the NDC has expanded its existing business angel investment program from NT$2 billion to NT$5 billion (US$178.58 million) to provide greater financial support for innovative and creative entrepreneurs.