TAIPEI (Taiwan News) — Taiwan’s economy will grow less than previously expected in the new year, according to two national research institutes.
The Chung-Hua Institution for Economic Research (CIER) believes the nation’s growth rate for 2023 will be 2.72% compared with 3.04% for 2022. Meanwhile, the Taiwan Institute of Economic Research (TIER) is forecasting growth of 2.91% for 2023.
The CIER said the expected decrease would be because of a coming global slowdown. Last week, the central bank made a similar forecast, citing geopolitical tensions, inflation, and climate change problems.
Reports from the central bank on Thursday (Dec. 15) noted that outbound sales had fallen year-on-year for the third month in a row, while a decline in exports over the same time period was hurting private sector investment.
At its policy meeting, the central bank raised its key interest rate by 12.5 basis points. Central Bank Governor Yang Chin-long (楊金龍) was quoted by CNA as saying, "The magnitude of the downgrade in the GDP growth forecasts by the central bank appeared apparent," so "the latest rate hike was limited," compared with the U.S. increase.