CEPD Sets Economic Growth Target at 4.3% for 2012

Taipei, Dec. 13, 2011 (CENS)--The Council for Economic Planning and Development (CEPD) resolved yesterday (Dec. 12) to set the economic target for 2012 at 4.3%, in lieu of the original proposal of a target range of 4%-4.3%.

The growth target is contained in the draft national development plan 2012, passed by the CEPD yesterday. The draft plan also targets to raise per capita gross domestic product at US$20,649, maintain unemployment at 4.2%, and keep consumer price index increase under 2%. The plan is expected to be ratified by the Cabinet meeting this Thursday.

The economic growth target is 0.11 of a percentage point higher than the growth forecast of 4.19% made by the Directorate General of Budget, Accounting, and Statistics (DGBAS), with excess part coming mainly from the contribution of private investment, according to Christina Liu, minister of the CEPD.

Liu pointed out that the CEPD originally planned to set a target range of 4-4.3% for 2012's economic growth but finally decided to set the target at 4.3%, so that various ministries can strive to achieve the target via concerted efforts.

Citing an article of the Asian Development Bank, Liu noted that even if the European debt crisis deteriorates further, the worst scenario will not be worse than the global financial tsunami in 2008. Moreover, the downturn of the U.S. and European markets will create a much greater impact on Hong Kong and Singapore than Taiwan, due to their heavier reliance on those markets. In reference to the forecasts of various international bodies, such as Global Insight and International Monetary Fund, Liu stressed that Taiwan's economy will perform the best among the four Asian little dragons in 2012.

The government, said Liu, will endeavor to bolster economic growth via the twin engines of external and domestic demands, especially domestic demand which has been playing a key role in economic growth since 2010.

Per capita GDP target for 2012 is set at US$20,649, only slightly higher than 2011's estimated figure of US$20,246, due partly to the pressure of depreciation for the NT dollar, as global funds will flow to the U.S. dollar market, at a time when the European debt crisis remains unresolved.