Taiwan 2001 GDP growth forecast cut to 4.75 pct from 5.61: TIER

TAIPEI (AFX-ASIA) - The Taiwan Institute of Economic Research said it has cut its 2001 GDP growth forecast to 4.75 pct from 5.61 pct set in January due to weakening global demand and trade volumes.	    GDP growth in the first quarter is estimated at 3.33 pct, followed by 3.91 pct in the second quarter, 5.14 pct in the third quarter and 6.53 pct in the last quarter, TIER said in a statement.	    The global economy is expected to improve in the second half on the back of the positive effects of U.S. interest rate cuts.	    Private consumption growth this year was adjusted to 4.54 pct from 5.84 pct due to the economic slowdown, equity market weakness and higher unemployment, TIER said.	    It said the decline in government consumption is estimated to increase to 2.39 pct from 1.83 pct set previously amid difficulties for medium- to small-size companies to secure loans and weak domestic demand.	    In U.S. dollar terms, exports in 2001 are expected to drop 1.12 pct from a year earlier, compared with a growth of 5.68 pct forecast in January, while imports have been revised to fall by 2.48 pct from a growth rate of 5.55 pct set earlier.	    CPI growth this year is seen at 1.05 pct from 1.97 pct set earlier, WPI growth at 0.75 pct from 2.22 pct, the average Taiwan dollar rate against the U.S. dollar at 32.37 from 32.05, while the average interbank overnight interest rate is seen at 4.34 pct from 4.81 pct set in January, TIER added. 

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