January 2018  
The 2018 world economic growth is predicted to outperform 2017
TIER adjusts its forecast for Taiwan's GDP growth in 2018 upward
The Taiwanese Economy in December 2017

Major global institutes such as the World Bank, Global Insight Institute, and International Monetary Fund simultaneously forecast the 2018 world economic growth will be better than the growth of 2017. As a result, the Taiwan Institute of Economic Research (TIER) adjusts its forecast for Taiwan's GDP growth in 2018 upward to be 2.34%.
Taiwan's exports in December 2017 increased significantly by only 14.84% compared with the same month of 2016 that would also be the 15th month of positive growth in exports. Regarding imports, Taiwan's imports in December 2017 increased by 12.19% compared with imports in December 2016. Exports and imports grew by 13.22% and 12.55% y-o-y respectively from January 1st till the end of December last year, Taiwan's exports and imports gave a trade surplus of US$ 57.88 billion or an increase by 16.34% on a y-o-y basis during the entire year.
Taiwan's consumer price index (CPI) went up by only 1.21% in December 2017 compared with the same month of previous year. The core inflation rate stood at 1.57% in December, 2017. In addition, the wholesale price index (WPI) moved up by 0.24% in December 2017 on the year-on-year basis. On the cumulative basis, the CPI and WPI went up by 0.62% and 0.90% respectively for the entire year of 2017 compared with 2016.
As for exchange rate, the NTD went stronger due to the relatively weaker USD, as the Fed had sent out its certain dovish messages and hot money continued to flow in. Anyway, the NTD/USD stood at 29.848 in late December 2017 indicating a 0.54% appreciation. Regarding the interest rate, it remained low and steady in December 2017 due to the continued loose monetary operations by the CBC with respect to the most recent CPI reading and relatively strong NTD; the lowest and highest over-night call rate in December 2017 stood at 0.173% and 0.184% respectively.
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