TAIPEI (Taiwan News) — Even demand for AI products has not been strong enough to help Taiwan’s economy grow, with gross domestic product (GDP) expected to expand by only 1.38% this year, the Chung-Hua Institution for Economic Research (CIER) said Friday (Oct. 20).

The think tank’s previous estimate put 2023 growth at 1.60%, though several institutions continuing to cut their predictions. The International Monetary Fund (IMF) issued a forecast of 0.80%, but most other estimates ranged between 1% and 2%.

CIER President Yeh Chun-hsien (葉俊顯) said he had seen swallows, but flocks of swallows would only arrive next year, per Radio Taiwan International (RTI). Taiwan’s economy was hot inside, but cold outside, he added.

Domestic investment and trade in goods had grown slower than anticipated, while even the emergence of AI had not been enough to fire up the country’s economy toward the end of the year, according to Yeh.

As 2024 was expected to be better, the CIER revised its GDP forecast for next year upward to 3.03%. The inflation rate was likely to fall to 1.86% in 2024, Yeh said.