TAIPEI (Taiwan News) – Taiwan’s economy will grow by 2.1 percent this year, mainly due to the return of Taiwanese firms trying to avoid the fallout from the trade war between the United States and China, Standard Chartered Bank said Thursday (August 15).
The British bank’s prediction was unchanged from previous assessments, and close to the government’s own forecast of 2.19 percent, which was revised upward after a better-than-expected second quarter.
In addition to Taiwan, other countries to benefit from the trade war included Vietnam, South Korea, the Philippines and Mexico as manufacturers picked them to transfer their production out of China, according to the bank’s report.
Another positive element boosting growth in Taiwan during the second half of 2019 was the rapid rise in the import of machinery, with year-on-year growth reaching more than 40 percent in June, and even 97.3 percent for the import of equipment used in the semiconductor sector, the Liberty Times reported.
However, Taiwan’s high degree on reliance on just China and the U.S. was also a factor of uncertainty looking to the period ahead, Standard Chartered cautioned. A fall in demand in the U.S. market might leave nobody a winner in the trade war, the bank said.