Taipei, July 14 (CNA) The National Development Council (NDC) on Tuesday approved a national development plan for 2021-2024 which includes a target of 2.6-3.4 percent annual growth in gross domestic product (GDP).

The projected annual increase in GDP is based on two major drivers -- enhanced investment and digital transition -- the NDC plan showed.

At the same time, the country is expected to see an unemployment rate of 3.5-3.8 percent, with the core consumer price index growing 1-1.5 percent per annum during the four-year period, the plan indicated.

However, the NDC also expressed concern about the possibility of the local economy experiencing a downturn amid the COVID-19 pandemic, geopolitical risks, oil and raw material price fluctuations and the lingering trade war between the United States and China.

Over the next four years, Taiwan could face challenges stemming from U.S.-China trade and technology disputes, a delay in developing coronavirus vaccines and drugs, the development of a new world economic order in the post-COVID-19 era and the rising importance of 5G and artificial intelligence, the NDC said.

The plan will be submitted to the Executive Yuan for approval before being carried out by relevant government agencies, the NDC said.

NDC Minister Kung Ming-hsin said "personally I am not pessimistic about the future."

According to Kung, a vaccine to deal with the COVID-19 pandemic will eventually become available. "It's just a matter of time," he said.

"Once the pandemic has come under control, the global economy will quickly recover, as evidenced by the fact that stock markets around the world have remained high on hopes that it will eventually pass."

Taiwan has shifted from a contract manufacturing-centered economy to a digital-based economy built on the "five plus two" initiative promoted by the Executive Yuan in 2016, Kung said. This is in line with President Tsai Ing-wen's core principles of innovation, employment and equitable distribution to upgrade local industry.

The initiative covers seven industries and projects: intelligent machinery, Asia Silicon Valley, green energy, biomedicine, national defense and aerospace, new agriculture and the circular economy.

As the government has continued to invest in the nation's infrastructure, offshore wind power and 5G industries, coupled with growing investment at home by overseas Taiwan businessmen, the local economy has built up great momentum for further expansion, he said.