TAIPEI (Taiwan News) — While the uncertain international situation will slow down Taiwan’s economic growth next year, inflation is also likely to fall back below 2%, Central Bank Governor Yang Chin-long (楊金龍) said Wednesday (Sept. 7).

According to government data released Tuesday (Sept. 6), the consumer price index (CPI) slipped to 2.66% for August, the lowest in six months. Over the previous five months, Taiwan’s inflation has stayed above 3%.

Whether a global recession is likely amid slow growth and high inflation depends on developments during 2023, Yang said. For Taiwan, he saw a return to stable price increases at an annual rate below 2%, CNA reported.

In a speech at the Chinese National Association of Industry and Commerce, Taiwan (CNAIC), Yang identified exchange rate policies, China’s economic troubles, the drop in value of the Japanese yen, the impact of the war between Russia and Ukraine on European economies, climate change, and the COVID-19 pandemic as the six key factors to monitor.

Taiwan’s central banker nevertheless still saw stable economic development on the horizon for the country, with modest but stable GDP growth and lower inflation, according to the report.