Alexa
  • Directory of Taiwan

Typhoon impact on economy short-term, say economists

Typhoon impact on economy short-term, say economists
956 residents in 171 households of Wu-tai Village in Pingtung County are cleaning up as everything dries out after living on their own crops and suppl...

Wu-tai Village drying out after Morakot in Taiwan

956 residents in 171 households of Wu-tai Village in Pingtung County are cleaning up as everything dries out after living on their own crops and suppl...

Taiwan's economy will not suffer from the devastation wrought by Typhoon Morakot, economists said yesterday.
Recent Gross Domestic Product figures from most countries in the Asia Pacific showed that the worst of the economic crisis was over, but even the typhoon would not significantly influence Taiwan's growth performance, said David Hong, the president of the Taiwan Institute of Economic Research.
More than 150 people died during the Aug. 8-9 storm, while hundreds are still missing. Taiwan's agriculture suffered more than NT$14 billion in damages, the second highest level since records began. Nevertheless, consumption and public investment would rise as reconstruction proceeded, reducing the negative impact of the disaster on the country's economy, Hong said. Exports, one of the most important driving forces of Taiwan's GDP growth, would hardly suffer, since most of the key exporters and high technology plants were located in Northern and Central Taiwan, away from the areas devastated by the typhoon, he said.
Deutsche Bank chief economist Norbert Walter said the impact of the disaster would be short lived, and the economy would suffer no long-term damage.
Walter, speaking at a European Chamber of Commerce Taipei luncheon yesterday, said Taiwan had shown signs of improvement since the second quarter, but the changes were still modest, and the country would still have to travel a long way before it regained its past performance level.
The country would be unable to escape a certain influence from the typhoon and from the spread of the A(H1N1) swine flu virus, but the impact would not last too long, Walter said.
The economist said Taiwan had also suffered under the global financial crisis because it was so dependent on exports. The countries most resistant to the crisis were those relatively isolated from the international economy, such as India and Indonesia, Walter said.


Updated : 2021-06-23 17:41 GMT+08:00