TAIPEI (Taiwan News) – The Chung-Hua Institution for Economic Research’s (CIER, 中華經濟研究院) most recent forecast predicts Taiwan’s GDP growth to taper off in 2019 due to the U.S.-China trade war, leading the think tank to call for the government to implement policies to stimulate domestic demand.
Taiwan’s economy is likely to be adversely affected by a decline in exports due to the trade war, leading CIER to call for the government to launch a host of stimulus policies to boost domestic demand.
CIER released its economic forecast for Q4 2018, predicting that Taiwan’s GDP will grow by 2.61 percent in 2018, and 2.18 percent in 2019.
In response to the trade war, CIER recommends for the government to implement a host of measures to boost domestic demand, including a four year NT$420 billion (US$13.58 billion) infrastructure investment scheme, reforms to the tourist industry, and loosening of restrictions to service industries, reported Liberty Times.
CIER acting president Wang Jiann-chyuan (王健全) said that Taiwan has NT$10 trillion tucked away in excess savings, and this money could be invested to help support a range of ventures in health, financial management, and other service industries to boost domestic demand.