TAIWAN GROWTH TO SLOW SOMEWHAT.

At the end of January 2005, the China Economic News Service (CENS) carried a report attributed to The Taiwan Institute of Economic Research (TIER) that said economic growth in the country will slow in 2005. Last year's growth was 6.17 percent, but TIER says it will only be 4.67 percent this year.

Several reasons were given for the slowdown: Foremost is the slowdown in the global economy generally. The report also cited high material prices, rising interest rates, and a glut of information technology products on the market. TIER based its conclusions on a recent survey of domestic firms of whom 19.4 percent thought Taiwwan's economy would be in better shape this year. The previous year's December survey found 20.2 percent of firms optimistic about the economy. The survey provided data which also indicated a sharp downturn in private investment for 2005. TIER said that in contrast to growth in private investment in 2004 of 25.08 percent, private investment in 2005 would shrink to 9.67 percent.

Where does this leave Taiwan's consumers?

Private spending will continue to expand, but at a significantly slower rate, according to the CENS report. Private spending grew last year at 3.06 percent. In 2005, expansion will be only 2.58 percent.

The news on private spending has apparently not discouraged major players in Taiwan's consumer markets. Taiwan News recently reported that giant packaged goods manufacturer Unilever is expanding its presence on the island nation. Taiwan's sophisticated consumers are good customers for the company's immense product line. Unilever sells approximately 400 brands worldwide, but only 10 in Taiwan.