Falling exports and overcapacity result in negative investment growth...05.07.2001-Primasia News-Taiwan

Primasia News, Taiwan

05.07.2001
Falling exports and overcapacity result in negative investment growth

Large investment projects (exceeding NT$200m) declined 15.5% MoM in April, totaling NT$23.8b. This follows a 39% YoY slump in the total value of large investment projects in 1Q01. In the first four months of the year, 24 large projects were approved, or 34% of 2001 target. Over 70% of the projects come from the high-technology manufacturing sector.
YtD investment figures are in line with our expectations as companies remain reluctant to expand capacity amid slumping global demand. We forecast private investment will fall 4.4% YoY in 2001, following growth of 13.7% YoY in 2000.