Taiwan’s GDP in 2019 to remain at 2.12%

An economic think tank in Taiwan is upbeat about the country’s growth outlook in the second half of the year

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Port of Kaohsiung (Photo/Tourism Bureau)

Port of Kaohsiung (Photo/Tourism Bureau)

TAIPEI (Taiwan News) – The Taiwan Institute of Economic Research (TIER) reports that Taiwan’s predicted 2019 GDP growth rate is unchanged at 2.12 percent, as forecast in January, but cautioned against three risks that could affect the island’s economic outlook.

At a press conference on April 25, TIER pointed out that Taiwan experienced an export slump in the first quarter due to sluggish global demand. This started in the fourth quarter of 2018 and led to mounting market worries over lackluster global growth.

According to Gordon Sun (孫明德), director of TIER's Economic Forecasting Center, manufacturers in Taiwan have increased capital equipment imports over recent months. This has given cause for optimism about global demand in the second half of the year.

Incentives provided by the government to encourage overseas Taiwanese businesses to increase investment back home, as well as an expected boom in infrastructure projects in the run-up to the 2020 general elections are also shoring up the economy, Sun was quoted by Central News Agency as saying.

Nevertheless, three external factors should not be overlooked, Sun added, which are whether China, the U.S. and Europe are able to reach their respective GDP growth targets of 6 percent, 2 percent, and 1 percent.