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Cathay Financial Holding Co. adjusts GDP downwards to 1.7 percent

Cathay Financial Holding Co. adjusts GDP downwards to 1.7 percent

Taipei, Sept. 17 (CNA) Cathay Financial Holding Co. (????) adjusted Taiwan's gross domestic product this year downward to 1.7 percent Thursday from an original estimate of 3.4 percent. However, the company was still optimistic about an economic rebound in the fourth quarter and that the GDP for next year will be 2.4 percent. It said that the steady demand from advanced countries, coupled with the depreciation of the Taiwan dollar, will help build up export momentum and that the economic situation will rebound markedly in the fourth quarter. As the overall financial situation will be stable, it estimated that there is room for interest rate cuts, given that the real interest rate in Taiwan tends to be high and economic growth momentum has weakened. It forecast that the central bank will not follow in the footsteps of the U.S. Fed by raising interest rate later this year, but will probably announce an interest rate cut. Meanwhile, professor Hsu Chih-chiang (???) of National Central University said that the economy in the first part of the year fluctuated drastically. But he said that after the economy hit bottom in the third quarter, it could bottom out in the fourth quarter. Hsu also gave a bold estimate that the central bank will probably announce an interest rate cut later this month. (By Tien Yu-pin and Lilian Wu)


Updated : 2021-09-26 14:52 GMT+08:00