* Q1 GDP revised to 3.14 pct y/y vs preliminary 3.04 pct
* 2014 GDP outlook raised to 2.98 pct from 2.82 pct
(Adds details, comments)
By Jeanny Kao and Michael Gold
TAIPEI, May 23 Taiwan predicts its economy will
grow at the fastest rate since 2011 this year on improving
prospects for global growth and the island's advantageous
position in the global tech supply chain.
The island's statistics agency said on Friday it expects GDP
growth of 2.98 percent in 2014 - an upgrade from its previous
estimate of 2.82 percent, which itself was an upgrade from a
previous forecast of 2.59 percent.
First-quarter GDP growth was revised to 3.14 percent, better
than its earlier estimate of 3.04 percent released in April.
The government cited investment and private consumption as
main drivers of growth, even as Taiwan's heavily trade-dependent
economy has gained from improving U.S. demand. Growth in the
world's largest economy is widely expected to bounce back from
the effects of severe weather that led to a sharp slowdown in
the first quarter.
China's rebalancing efforts have had an uncertain effect,
potentially boosting imports to the world's second-largest
economy while slowing growth overall.
China's factory sector showed signs of stabilisation in May,
according to a purchasing managers' index (PMI) survey released
on Thursday, suggesting that the government is managing its
mandate of slower but steady growth.
But Taiwan's exports to the mainland - its largest trading
partner - have been erratic in recent months, swinging from
growth to contraction as seasonal effects amplify China's wobbly
domestic growth prospects.
The tech sector remains a bright spot for Taiwan and
routinely gives a major boost to growth. The island's Ministry
of Finance said that the overall value of electronic exports
reached a new single-month record in April, as Taiwan continues
to occupy the highest rung of the supply chain for products such
as chips and smartphone components.
"Chip vendors should continue upping their expenditures and
investments heading into the second half of the year, which will
provide a further boost to overall economic growth," said
Michelle Tsai, a Taipei-based economist at Jih Sun Securities
(Reporting by Jeanny Kao; Editing by Jacqueline Wong)