Citigroup (NYSE:C) Says GDP of Taiwan to Grow 7.2 Percent

Citigroup (NYSE:C) Taiwan’s top economist, Cheng Cheng-mount, said in the second quarter Taiwan’s economy is on course to grow by 8 percent, and on an annual basis, 7.2 percent.

“Taiwan’s economic growth forecast for this year will likely be higher than the Taiwan Institute for Economic Research’s latest estimate of 5.11 percent,” said Cheng.

Leading the way for Taiwan are exports, which could bring the strongest economic performance for the country since 1997.

By quarter, Cheng had projected the economy to grow 11.8 percent in first quarter if exports continue their growth trajectory, 8 percent in the second quarter, 6 percent in the third and 3 percent in the fourth.

Added together this would give Taiwan growth of 7 percent on the year, much higher than government estimates of 4.72 percent and the 6.5 percent estimate of the IMF.

One positive element is the majority of Taiwanese exports are directed toward Asian countries, so the sovereign debt crisis in Europe won’t have as much impact on them as it will on more exposed countries.

Private investment is expected to increase by about 14.9 percent from last year if the export estimates are close to what are expected, which could spur more consumption domestically.