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Taiwan May Fail to Achieve 6.1 Percent Growth Goal
A senior economic planner of Taiwan said Wednesday that Taiwan may be unable to achieve its projected 6.1 percent economic growth rate this year because of cyclical factors and a worldwide economic slowdown, according to reports reaching here from Taipei.
Taiwan's economic growth rate may fall between 5.2 percent to 5. 7 percent this year, lower than last year's 5.98 percent, said Chen Po-chih, head of an economic planning institution of the Taiwan authorities.
"And if we fail to take active stimulus measures, this year's growth rate may even fall below 5.3 percent," he warned.
The local economic cycle has entered a period of contraction, Chen said.
"We must redouble our efforts if we want to achieve the 6.1 percent growth target this year," the reports quoted Chen as saying.
Chen said Taiwan's economic fundamentals remained in good shape last year, but its major financial indicators registered poor performance due to weakening consumer confidence, poor management in the traditional industry sector and swelling bad bank loans.
Against this backdrop, Chen said, Taiwan's overall economic performance had further worsened in January this year partly because of a global economic slowdown.
Chen said Taiwan's composite economic index signaled a grim " blue light" in January, with nearly all major indicators, ranging from exports, production, unemployment to investment posting negative growth.
Chen predicted declines in private consumption and investment this year due to sagging stock and property markets and a recession in the global electronics and information-technology market.
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