Taipei, Sept. 25 (CNA) The Asian Development Bank (ADB) Thursday raised its forecast for Taiwan's GDP (gross domestic product) growth for the year to 3.4 percent, citing strengthening domestic and external demand that brought average growth for the first half of the year to 3.5 percent.
The new forecast is up from ADB's previous forecast in April of 2.7 percent growth for the year. The bank also raised Taiwan's growth rate forecast for next year to 3.3 percent, up from 3.2 percent in the previous report.
The Asian Development Outlook 2014 Update, released Thursday by the bank, also said that growth in Developing Asia, a group of 45 members of ADB which excludes Japan, is forecast to pick up from 6.1 percent in 2013 to 6.2 percent in 2014 and to a further 6.4 percent in 2015.
Growth decelerated in the first half of 2014 in all the economies of East Asia except Taiwan, where both domestic and external demand strengthened thanks to increased travel and retail sales as well as higher private sector investment, according to the report.
Taiwan's GDP grew in the second quarter by 3.7 percent year-on-year.
Of the 3.5 percent growth in the first half year, private consumption contributed 1.5 percentage points, investment contributed 0.6 percentage points and net exports contributed 1.4 percent points.
Net exports expanded by 7.0 percent in the half year.
Demand is expected to remain strong at home and abroad, according to ADB. Export orders increased by 5.4 percent in the first half of 2014, reversing a 1.7 percent slump in the first half of 2013.
The bank predicted domestic demand will be boosted by improved consumer confidence as the labor market strengthens. It cited the unemployment rate, which dropped to 3.9 percent in June 2014, the lowest since July 2008, as well as rising tourist arrivals from China.
As for East Asia -- including China, South Korea, Hong Kong, Mongolia and Taiwan -- economic growth will remain at 6.7 percent in 2014 and 2015, as moderation in China and Hong Kong and a slowdown in Mongolia are offset by upswings in South Korea and Taiwan, the report said.
China's GDP is forecast to grow 7.5 percent in 2014, South Korea's 3.7 percent, Singapore's 3.5 percent and Hong Kong's 2.5 percent, ADB said.
(By Emerson Lim and Kuo Chung-han)
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