CHIER ups prediction for economic growth to 4.17% for 2006

This article was published by the Taiwan Headlines on April 27, 2006. It reports that the Chung-Hua Institute for Economic Research recently adjusted its forecast for Taiwan's economic growth in 2006 to 4.17 percent.

According to the economic think tank, the rise of private spending is likely to reach 3.12 percent in 2006. Domestic investment is also expected to grow by 4.57 percent. While the exports of goods and services are expected to rise by 7.12 percent, the imports of these will rise by 6.12 percent.

The annual growth of the consumer price index in 2006 may jump to 2.17 percent as a result of price hikes for basic consumer products such as oil and electricity. According to the Chung-Hua Institute for Economic Research, the annual growth rate of the consumer price index is expected to be 2.03 percent in the second quarter of 2006, 2.14 percent in the third quarter, and 1.77 percent in the final quarter.

According to the Chung-Hua Institute for Economic Research, if the rices of electricity and transportation services go up along with the soaring international oil prices, then the costs borne by Taiwan's manufacturers may increase by 0.27 percent in the short term and 0.53 percent in the long term.