Manufacturing sector output to grow 2.93%
TAIPEI — The value of the output of Taiwan’s manufacturing sector is expected to grow 2.93 percent this year from a year earlier because of the global economic recovery, according to the Industrial Economics and Knowledge Center (IEK).
The forecast represented an upward revision of 0.07 percentage points from an earlier estimate as Taiwan is expected to benefit from an increase in exports on rising global demand.
The IEK, a research unit under the government-sponsored Industrial Technology Research Institute, said the local manufacturing sector will generate output worth NT$19.55 trillion (US$619 billion) in 2015, up from the estimated NT$18.99 trillion last year.
The IEK said the plunge in international crude oil prices should help Taiwan’s manufacturing sector cut its operating costs and bolster its total production value, and the sector should also get a boost from rising domestic consumption.
The research report showed that the information technology segment is expected to remain the catalyst of growth in the manufacturing sector in 2015.
The information technology segment could see output rise 5.03 percent from a year earlier to NT$6.33 trillion, the IEK said. The 5.03 percent growth forecast was an upgrade from an earlier projection of a 4.97 percent rise, it added.
The metal/electric equipment segment’s output value for 2015 is expected to reach NT$5.31 trillion, up 2.21 percent from a year earlier, while the chemical sector’s output is expected to total NT$5.47 trillion, up 1.90 percent from a year earlier.
The overall manufacturing sector’s output value is expected to grow 2.32 percent year-on year in the first quarter, 2.50 percent in the second quarter, 3.80 percent in the third quarter and 3.01 percent in the fourth quarter, the IEK report showed.
The IEK said the anticipated increase in global demand is expected to benefit several information industry segments, including integrated circuits and large-sized TV panels.
It warned, however, that Taiwanese panel makers could be hurt by stiffer competition as China gears up to increase its flat panel capacity.
The IEK said that due to a steep fall in crude oil prices, the auto industry could see its sales grow this year, a plus to the entire manufacturing sector in Taiwan.