TAIPEI (Taiwan News) – Taiwan’s sovereign rating remained at AA- and the outlook was for more stability, according to Fitch Ratings, the Liberty Times reported Thursday (September 26).
AA- is the fourth best rating, following AAA, AA+ and AA. While the island could rely on several factors encouraging stability, it still needed to look out for the relatively low income of its citizens, the complex relationship with China, and the potential for difficult political conditions, Fitch reportedly said.
Taiwan’s performance during the first half of the year was better than expected despite the trade war between the United States and China, with exports bouncing back and investment on an upward curve despite dormant domestic consumption.
The island’s gross domestic product would likely grow by 2.2 percent this year, but was likely to fall back to 2 percent in 2020, partly due to more U.S. tariffs expected in December, Fitch said.
The main perils for Taiwan’s economy were still to be found outside the country, especially an eventual global slowdown in the wake of the trade war, the report concluded