Taiwan Sets GDP Growth Target for 2014 at 3.1-3.7%

The National Development Council (NDC) of the Executive Yuan, Taiwan's Cabinet, has announced several key economic development targets for 2015. Among the targets, gross domestic product (GDP) growth has been set at 3.1-3.7%, the unemployment rate at 3.8-3.9%, and growth in the consumer price index (CPI) at 2%.

NDC Minister C. M. Kuan pointed out that these targets are based on the 3.5% GDP growth projected by the Cabinet-level Directorate General of Budget, Accounting and Statistics (DGBAS). He said that the island's GDP growth rate may rise to 3.7% in 2015 if international conditions remain stable and Taiwan's economic liberalization and industrial reinvigoration policies continue deepening. Otherwise, the island's GDP growth may drop as low as 3.1%.

The NDC has targeted the island's 2015 per-capita GDP in the range of US$22,649-22,807.

This is the first time that the Council has set targets in low-high ranges. In the past, Kuan noted, the government set targets in single figures because the worst possibilities were not considered.

The minister added that any economic forecast involves uncertainties and that the use of target ranges has been adopted by the world's major economies because it is more practical.

Although Kuan feels that global economic growth in 2015 will remain at the 2014 level, he thinks that in view of Taiwan's current economic structure it will be difficult for the island's economic growth to top 4% again.

(KL)