Taiwan 2006 GDP forecast trimmed after second quarter data

Taiwan's economy grew 4.57 percent from a year earlier in the second quarter, just beating market expectations thanks to robust exports and despite weak domestic consumption. However, the government trimmed its full-year growth forecast to 4.28 percent from 4.31 percent.
The second-quarter gross domestic product (GDP) growth data released on Thursday compared with the first quarter's revised 4.92 percent expansion and an estimate of 4.5 percent in a Reuters poll.
For the full year, the government raised its export growth forecast, but slashed its annual rise in domestic consumption and private investments.
"Due to credit card problems, domestic consumption was weak in the second quarter, especially car sales, which fell an annual 46 percent in the first and second quarters," chief statistician Hsu Jan-yau told a news conference.
"We've cut our domestic consumption growth, even though credit card problems are expected to ease as we approach the fourth quarter," Hsu said.
Some Taiwanese households have been running up heavy credit card debt, leading to a dampening of consumer sentiment.