RTTNews - Taiwan's economic downturn eased in the second quarter, prompting the government to upwardly revise its outlook for 2009.
Gross domestic product or GDP fell 7.54% year-on-year in the second quarter, the Directorate General of Budget, Accounting and Statistics said Thursday.
Economic contraction eased from a 10.13% decline in GDP in the first quarter, which was revised from a 10.24% fall reported earlier. Economists had forecast a 7.8% drop in GDP in the second quarter.
Taiwan's GDP has been falling since the third quarter of 2008 and the economy fell into a recession in the fourth quarter.
The notable decrease in the pace contraction in the second quarter prompted the government to raise its forecast for 2009. The economy is now expected to contract 4.04% this year, better than a 4.25% shrinkage predicted in May.
The economy is then forecast to grow by 3.92% in 2010, in line with the expected global recovery, which would make Taiwan's trade sector in a much better shape.
The forecast for the consumer price index is revised to show a fall of 0.68% in 2009 instead of an earlier prediction of a 0.84% decline. In 2010, inflation would be at 0.87%.
Further, the statistical office said real GDP increased 20.69% in the second quarter on a seasonally adjusted annual basis, in contrast to a decrease of 10.16% in the first quarter.
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