TAIPEI (Taiwan News) — A survey published on Monday (May 10) reveals that German companies expect not only that Taiwan’s economy will grow but that their own business in the country will improve over the next 12 months.
The survey was conducted by the German Chamber of Commerce Abroad (AHK) in its 140 locations in 92 countries between March 17 and April 9. It showed similar results as the Business Confidence Survey released by the German Trade Office Taipei (GTOT) in February.
Regarding Taiwan, 74.5 percent of the German companies are optimistic about the country’s economy for the next 12 months, an 11.2 percent increase from the previous GTOT survey. Meanwhile, 23.3 percent believe the outlook remains the same.
When it comes to business expectations, roughly two-thirds of the companies forecast that their business will improve within a year, while not one expects it to worsen. Although none of the respondents say they plan to lay off employees, about 44 percent plan to recruit.
Despite the positive expectations for Taiwan’s development, the survey also shows challenges for business operations.
Decreased demand and trade barriers are considered major problems for the coming year, with about 50 percent and 35 percent of companies considering these to be concerns, respectively. Exchange rates could also pose a challenge, according to 25.6 percent of respondents.
As for the impact of COVID-19, travel restrictions are reckoned to be the biggest problem by 68.3 percent of companies, while 51.2 percent believe the main problem to be supply chain issues and 36.6 percent peg it as the cancellation of trade fairs and events.
However, only 2.3 percent of companies said they would reduce their investment in Taiwan, and almost one-third plan to invest more. Furthermore, 41.5 percent foresee economic operations returning to normal in the second half of 2021, while 22 percent predict the recovery will take place in the first half of the year.
Taiwan's economic outlook over next 12 months. (AHK photo)
