Cathay increases economic growth forecast to 4.2%LOOKING UP: The firm raised its forecast for private investment growth to 3.7%, as TSMC has raised its capital expenditure to between US$25bn and US$28bnBy Kao Shih-ching / Staff reporterCathay Financial Holding Co (國泰金控) yesterday raised its forecast for the nation’s economic growth this year to 4.2 percent, up from the 3.2 percent it predicted in December last year, due to stronger-than-expected private investment and the improving global situation, it said. The firm raised its prediction for private investment growth to 3.7 percent, as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, in January raised its capital expenditure to between US$25 billion and US$28 billion, it said. Cathay Financial previously expected private investment to slow this year and grow 2.5 percent in light of a high comparison base last year. Taiwanese firms would continue to benefit from strong demand for new technology applications and devices required to maintain a low-contact economy, Hsu said. Cathay Financial forecast that the central bank would keep benchmark interest rates unchanged this year, as the nation’s inflation is expected to remain mild, Hsu said.

Source: Taipei Times March 24, 2021 15:56 UTC