TAIPEI (Taiwan News) — Taiwan’s economy will fail to achieve 2% growth this year, though the emergence of artificial intelligence (AI) might help its exports, one of the country’s leading think tanks said on Thursday (July 20).
The Chung-Hua Institution for Economic Research (CIER) predicted that gross domestic product (GDP) will grow by 1.60% for 2023, below the 2% often mentioned by governments and economists. In April, CIER still forecasted a 2.01% expansion for Taiwan’s economy.
Declines in export orders and weak trade in goods were seen as the main causes for the weak performance, per UDN. The situation means Taiwan’s economy would continue to be “warm inside (the country), but cold outside.”
Nevertheless, when split up per quarter, this year saw vastly different economic performances, according to CIER President Yeh Chun-hsien (葉俊顯). During the first quarter, Taiwan’s GDP contracted by 2.87%, while the second quarter saw meager growth of 0.48%. CIER expects 2.41% for the third quarter and a surge to 6.11% during the final three months of the year.
Yeh saw AI as a ray of hope for the country’s exports and economic progress. While it is uncertain how widespread the new technology will be, Taiwan’s reliable technology, healthy production chains, and positive business environment are all positive factors, CIER said.