Gross domestic product (GDP) is expected to rise 6.09% this year, the fastest pace since it expanded 10.25% in 2010, the Directorate General of Budget, Accounting and Statistics said, and up from a growth forecast of 5.88% made in August.
For 2022, the office said it saw GDP growth reaching 4.15%, up from 3.69% predicted in August.
The directorate’s deputy head Tsai Hung-kun said supply chain problems would impact exports in the fourth quarter, but trade growth and domestic consumption would help buoy the economy next year.
“External demand for next year is not looking bad,” Tsai added.
His office said it saw exports this year rising 28.88% from 2020, up slightly from the previous prediction of 28.15%, while for next year it saw exports up 6.14%, from 5.22% seen before.
Fitch Solutions said earlier on Friday it retained its expectation for 6% growth this year, but said it would slow to 2.7% next year, with supply chain issues impacting exports.
“If supply side issues persist, particularly with regard to the production of semiconductors, it could pose further downside risks to our real GDP growth forecasts,” it added.