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Central Bank governor says Taiwan's annual GDP growth may drop to 4%

Next economic forecast scheduled for June 16

Central Bank Governor Yang Chin-long addresses legislators Thursday. 

Central Bank Governor Yang Chin-long addresses legislators Thursday.  (CNA photo)

TAIPEI (Taiwan News) — Imported inflation might make it difficult for Taiwan’s GDP to reach 4% growth this year, Central Bank Governor Yang Chin-long (楊金龍) said Thursday (May 12).

The country’s economy produced positive results in the first half of 2022, but prospects for the second half are clouded by uncertainty over the war in Ukraine and global inflationary pressures, the top banker told legislators.

Asked about his opinion of an International Monetary Fund forecast of 3.2% GDP growth for 2022, Yang said the financial body had a record of underestimating Taiwan’s performance, CNA reported.

The Central Bank itself is still in the process of collecting information for its next forecast, scheduled to be announced on June 16.

Yang said there is no immediate cause to worry about investments, as they are mostly connected to the nation's exports, which have performed excellently over the past year.

Import-induced inflationary pressure is more of a concern, with the Consumer Price Index (CPI) rising significantly in the second quarter before a slowdown in the second half, he said. However, it will still end above 2% for the full year, according to Yang.