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Taiwan’s GDP to grow 2.44% in 2020: CIER

Domestic investment main driving force behind economy momentum

(Facebook, Port of Kaohsiung photo)

(Facebook, Port of Kaohsiung photo)

TAIPEI (Taiwan News) — The Chung-Hua Institution for Economic Research (CIER) on Thursday (Dec. 19) revised upward Taiwan’s GDP growth in 2019 to 2.54 percent and forecast 2.44 percent growth for the country’s economy next year.

Domestic investment is the main driving force behind Taiwan's GDP performance this year, propped up by increased investment from both the public and private sectors, according to CIER. Taiwan saw a 7.58 percent rise in domestic investment in 2019, the most growth in nine years, wrote Liberty Times.

The world should brace itself for sluggish economic activity next year, as signs of uncertainty remain. While China and the U.S. have reached the Phase 1 agreement of a long-elusive trade deal, sticking points have yet to be solved, including China’s policy of subsidizing state companies and selected industries, said CIER President Chen Shi-kuan (陳思寬).

China, the world’s second-largest economy, is struggling to meet the challenges of an economic slowdown, credit risk, and risks associated with structural transformation. These factors could weigh heavily on the global economy, he added.