IMF raises Taiwan’s GDP growth forecast to 10.7% — Taipei Times

The International Monetary Fund, at its annual meetings in Bangkok, raised its forecast for Taiwan’s gross domestic product growth this year from 5.2% to 10.7%. This is the highest projected rate among Asia-Pacific economies, Taipei Times reports.

In its updated World Economic Outlook report, the IMF called Taiwan the only economy in the world projected to post double-digit growth this year. However, the Fund’s estimate is lower than the 11.05% forecast released in August by Taiwan’s Directorate-General of Budget, Accounting and Statistics.

Forecasts for regional economies

According to the IMF, Japan’s economy will grow by 0.7% this year, South Korea’s by 3.3%, Singapore’s by 5%, and Hong Kong’s by 3.8%. The Fund forecasts growth of 4.5% for China and 2.3% for the United States.

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The revision of Taiwan’s forecast comes amid the artificial intelligence boom. The IMF noted that large-scale production of advanced semiconductors is concentrated in a small number of economies, while Taiwan and South Korea account for 62% of net trade in AI-related computing equipment.

Exports and current account

Amid strong export performance, the IMF forecasts Taiwan’s current account surplus at 22% of GDP this year, one of the highest among major economies. The Fund also raised its consumer price growth forecast to 2%, compared with 1.5% projected in April. The unemployment rate is expected to remain almost unchanged at 3.4%.

The IMF raised its global growth forecast by 0.1 percentage point to 3.1% this year, after 3.5% last year. The Fund stressed that investment in artificial intelligence, equipment and infrastructure is currently supporting demand and international trade, but expectations regarding the profitability and productivity of such technologies may change.