COVID-19: GDP growth forecast raised to 5 percentDEMAND FOR EXPORTS: While a level 3 COVID-19 alert is wreaking havoc on service providers, there is little impact on manufacturers, a Standard Chartered economist saidBy Crystal Hsu / Staff reporterStandard Chartered Bank Taiwan (渣打台灣銀行) yesterday raised its forecast for the nation’s GDP growth this year from 4.4 percent to 5 percent, as local firms continue to benefit from strong demand for technology products amid an improving global economy. The upward revision came despite consumer spending taking a hit from social distancing measures implemented to combat a COVID-19 outbreak, the bank said. Domestically, the COVID-19 outbreak is driving up unemployment and consumer confidence would remain weak until vaccination rates reach safe levels, he said. In related news, the Taiwan Research Institute (台灣綜合研究院) yesterday forecast GDP growth of 5.12 percent for this year. Major economies are emerging from the COVID-19 pandemic, a trend that bodes well for global trade and the nation’s exports, the institute said.

Source: Taipei Times July 14, 2021 15:56 UTC