Taiwan's economy grew a less-than-targeted 3.03% in the second quarter to June amid a slowdown in the global recovery, said the island's top budgeting body.
Gross domestic product (GDP) advanced less than the projected 3.6% due to record high oil prices and interest rate hikes, according to the Directorate General of Budget, Accounting and Statistics. The agency however raised 2005 GDP forecast to 3.65% from the 3.63% projected in May due to an easing in unemployment rates and more consumption. It also set the 2006 GDP growth target at 4.03%.
The agency expects GDP in the third and fourth quarters of the year to grow 4.32% and 4.63%, respectively, up from its May estimates of 4.04% and 4.31%.
Key contributors to the anticipated faster growth in the second half included a recovery in factory usage by major manufacturers, a stock market recovery and continuing private investment projects, the agency said. The government's moves in stepping up public works projects were also expected to provide a further boost to GDP, it added.
Copyright Agence France-Presse, 2005