Nation retains optimism on economy: Cathay Financial

By Linger Liu, The China Post

The economics research center at the Cathay Financial Holding Co. (國泰金控) yesterday said that Taiwan’s public has a positive outlook for the nation’s economy, with forecast indicators recording new highs on last year.

Most Taiwanese expected to see the economy grow this year. A majority also expect businesses and the country’s GDP to expand this year.

Cathay Financial Holding said the U.S. economy is likely to rebound, as is the economy in Europe. The general global economic recovery will benefit the nation’s domestic economic growth.

The Council for Economic Planning and Development (CEPD) earlier forecast growth for the next six months. Global Market Expectations The loose monetary policies implemented by major global economies, such as the U.S. and the mainland China, can contribute to boost global growth, Cathay Financial Holding said, adding that emerging markets, such as Brazil, Russia, India and China, are standouts amid a slow economic recovery worldwide. Many economic institutes, including the CEPD, have noted that U.S. financial uncertainty and the European debt crisis remain uncertain variables, with the potential to disturb global economic growth.

Coming Boosts for Real Estate

In October of last year, the Ministry of the Interior (MOI) established the real estate transaction database to provide actual selling prices for presale properties.

The government expected housing market price transparency to help housing sales, according to the MOI.

Cathay Financial Holding forecast that the property transaction system will control price inflation. Growth in the Chinese Yuan

The economic research center said real estate demand is likely to increase. According to Cathay Financial Holding, 85.4 percent of Taiwanese have not yet purchased Chinese yuan saving deposits. The survey shows that around 10 percent of citizens have made less than 5 percent of their investment as Chinese yuan.

The research center said it may see Chinese yuan holdings, currently at a touch less than 5 percent, will grow into 25.9 percent in a year.