Asian Report: Taiwan's Economy Accelerates; China Proceeds on Space Program --- A Wall Street Journal News Roundup
TAIWAN'S ECONOMY has shifted into high gear, with stronger-than-expected growth.</br></br>Economists have raised their 1986 economic-output estimates because of a recovery in exports, low oil prices and falling interest rates. The government's Council for Economic Planning and Development originally set a 5.5% target for growth this year in Taiwan's inflation-adjusted gross national product, the nation's output of goods and services. Now, however, officials say they expect GNP to increase at least 7%. In 1985, GNP grew 4.7%.</br></br>"The general economic tone is good," says Mark Mobius, president of the International Investment Trust Co., which manages stock-market funds in Taiwan. "I wouldn't be surprised to see 8% growth this year."</br></br>Exports, the driving force in Taiwan's economy, have bounced back, totaling $5.39 billion in the first two months of 1986, up 11.3% from a year earlier. The strengthening of the U.S. economy helped boost exports to that nation 15% during the period, to $2.85 billion. A drop in the value of Taiwan's currency, which makes Taiwanese products more price competitive abroad, also is a factor.</br></br>One cloud on the horizon for business is the introduction in Taiwan next Tuesday of a value-added tax of 5% on all transactions. Economists and government officials say this could cause a mild acceleration in inflation.