《TAIPEI TIMES》 GDP could grow over 10％ this year: minister

Minister of Economic Affairs Kung Ming-hsin speaks at a meeting of the legislature’s Economics Committee in Taipei yesterday. Photo: CNA

STRONG EXPORTS:Orders have grown across industries from a year earlier, with the Taiwan Research Institute forecasting GDP growth of 9.64 percent for this year

By Meryl Kao / Staff Reporter Taiwan’s GDP growth could exceed 10 percent this year on the back of robust demand for artificial intelligence （AI）-related products and stronger-than-expected exports, Minister of Economic Affairs Kung Ming-hsin （龔明鑫） said yesterday.

In addition, outbound shipments have improved across industries from a year earlier, with machinery orders posting double-digit percentage growth in the first five months of this year, Kung said at a meeting of the legislature’s Economics Committee in Taipei.

The Taiwan Research Institute on Tuesday adjusted its GDP growth forecast upward to 9.33 percent for this year, while the Directorate-General of Budget, Accounting and Statistics last month revised its forecast to 9.64 percent — the highest in 16 years.

National Development Council （NDC） Minister Yeh Chun-hsien （葉俊顯） echoed Kung’s positive view later yesterday, saying that demand for AI is stronger than expected this year and consumption became another driving force, coupled with improvements in some traditional industries, the Central News Agency reported yesterday.

Based on those reasons, Yeh said he believes GDP growth this year has a chance to exceed 10 percent, along with easing inflation amid cooling geopolitical tensions in the Middle East.

Foreign media reported that the US and Iran had reached a preliminary agreement and are expected to sign a peace deal today, which could lead to the reopening of the Strait of Hormuz. The waterway is crucial to global shipments of oil, natural gas and related products such as fertilizer.

Regarding Taiwan’s strategic oil reserves, Kung said energy supplies would remain secure throughout the year.

The nation has also secured sufficient liquefied natural gas （LNG） supplies through September and is working on supply scheduling for the fourth quarter, he said.

Taiwan’s LNG procurement agreement with the US, signed last year, has already taken effect, with import volume expected to increase gradually, he added.

Asked about a Reuters report that state-run utility Taiwan Power Co （Taipower, 台電） would receive a NT$300 billion syndicated loan from eight state-owned banks to ease financial pressure caused by frozen electricity rates, Kung confirmed the report, saying the three-year loan would carry an interest rate of about 1.85 percent and is aimed at strengthening Taipower’s working capital and helping it ensure a stable power supply.

Taipower has accumulated losses and requires significant funding for energy procurement, with its financing needs mainly related to short-term liquidity, he said.

The government would continue to seek additional capital injections or budget allocations for Taipower, while respecting differing views in the legislature, he added.

新聞來源：TAIPEI TIMES