TAIPEI (Taiwan News) — Taiwan’s economy will grow by 3.76% this year rather than the 3.91% forecast earlier, the government said Friday (Aug. 12).

In late May, the Directorate General of Budget, Accounting and Statistics (DGBAS) saw Gross Domestic Product (GDP) expanding by 3.91% and the Consumer Price Index (CPI) by 2.67%, CNA reported.

However, the government department cut the GDP forecast while raising the CPI prediction to 2.92% for the full year. February’s Russian invasion of Ukraine and the continued war, global inflation, and Taiwan’s COVID-19 surge since April all contributed to the less optimistic picture, economists said.

The DGBAS also saw the economy slowing down further into 2023, with annual GDP for next year likely to stand at 3.05%.