Taiwan’s exchange traded fund (ETF) iShares MSCI Taiwan Index (EWT) received some news that could give it a bump up. Recent statistics show that Taiwan’s overall growth rate this year will be higher than anticipated earlier, despite the global economic downturn triggered by the U.S. subprime credit loan crisis.
The statistics released in late August show that the growth rate during the second quarter this year reached 5.1%, which is 0.7% higher than predicted. It’s the best growth performance in the past six quarters, the Taiwan Journal reports. Some experts think the growth rate could go up even higher. Officials noted the growth in domestic, private investments as well as foreign trade during the second quarter this year, with increased confidence in the high-tech manufacturing sector. The confidence is supported by the fact that during the second quarter, total investment from the private sector reached $17 billion, which is up by 12.5% compared with the same period last year. Other factors helping the economy include a rising employment rate, personal income is improving and the stock and real-estate markets are gaining confidence. Most Taiwanese economists believe that these increases have indicated that Taiwan’s economy is headed for steady growth and stocks could be pushed upward. If the stocks go up, that will benefit EWT, which is already up 17.3% year-to-date.
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