Taiwan to see manufacturing output growth slip to 3.21% in 2019

The drop can be partly attributed to the global economy losing steam

Port of Kaohsiung (Photo/Taiwan International Ports Corporation)

Port of Kaohsiung (Photo/Taiwan International Ports Corporation)

TAIPEI (Taiwan News) – The production growth for Taiwan’s manufacturing sector in 2019 is predicted to slip 1.54 percent to 3.21 percent on a yearly basis amid trade woes and signs of a reversed trend as seen from a number of economic indicators, according to a report released Oct. 24 by the Industrial Economics and Knowledge Center (IEK) under the government-sponsored Industrial Technology Research Institute.

Taiwan is expected to see 4.75 percent growth in the export-oriented manufacturing sector in 2018 as the country has posted 23-months of growth in exports thanks to the global economic expansion this year, IEK estimated.

However, the global economy is running out of momentum as the U.S. and China are locked in a trade battle, which inflicts harm on both economies, while a number of economic indicators have also signaled a broader lackluster performance, pointing to a slowdown in 2019, the report suggested.

Manufacturing output for Taiwan in 2019 is measured at NT$20.07 trillion, or a growth rate of 3.21 percent. For next year’s outlook, IEK forecast that the country’s export industry will be bolstered by electronic components and end products, riding on wave of the introduction of IoT and AI technologies, reported Liberty Times.

The research institute also provided predictions on the four major pillars of Taiwan’s manufacturing sector. Chemical and IT industries remain the main drivers of growth, while metal and machine industries as well as consumer goods industry will keep a slight growing pace. Noteworthily, Taiwan’s semi-conductor industry is estimated to grow by 4.5 to 5.3 percent next year, faring better than global average.