By Crystal Hsu / Staff reporterThe government yesterday raised its GDP growth forecast for this year to 2.05 percent, from the 1.92 percent it predicted three months earlier, as growth in the first quarter was better than expected and the momentum is likely to extend throughout this year. The unemployment rate last month dropped to the lowest level in 23 months and monthly take-home wages rose to a record high in the first quarter, Chu said. The outlook has improved, but the local currency’s ongoing appreciation might soften the GDP showing in New Taiwan dollar-denominated terms, Chu said, adding that each NT$1 appreciation in the local currency knocks 0.01 percentage points off GDP growth and 0.2 percentage points off inflation. Despite the upward GDP revision, Chu said he is cautious about the economy, which has advanced at a milder pace than the global economy and global trade. GDP growth is expected to ease to 2.14 percent this quarter, 1.87 percent next quarter and 1.66 percent in the final quarter, the report said.

Source: Taipei Times May 26, 2017 16:05 UTC