Foreign Forecast Institutions Optimistic about Taiwan's 2014 Economic Growth

Although Taiwan may postpone or shelf the Cross-Strait Trade in Service Agreement with China after severe student-led protests, some foreign forecast institutions still feel optimistic about Taiwan's economic growth this year.

Standard & Poor's, a U.S.-based rating agency, predicts Taiwan's economic growth this year to reach 3.7% and as high as 4.9% if the global business climate improves. UBS AG, a Swiss bank, has recently raised its forecast for Taiwan's 2014 economic growth to 4% from 3.7% made earlier and Barclays Capital also foresees Taiwan's DGP growth to reach 4% for the year.

Likewise, Standard Chartered Bank believes that Taiwan's economic growth may rise to 3.9% for 2014 as the global economy is expected to regain strength, with strong market demand for electronic products particularly tablet PCs and smart hand-held devices, of which Taiwan being a major supplier.

Australia and New Zealand Banking Group says that Taiwan is an export-oriented island and will benefit from the economic recovery of its major export outlets--the United States and EU. So, the bank foresees Taiwan's GDP growth at 3.6% for 2014.

However, the Development Bank of Singapore believes that Taiwan's service pact with China plays a key role for its future economic development and the current controversy may undermine the island's economy. So, the bank maintains its prediction of the island's economic growth at 3.3% this year. (JL)