Asia

Taiwan cuts 2023 GDP growth forecast to 2.75%

TAIPEI, Nov. 29 (CNA) On Tuesday, the Directorate General of Budget, Accounting and Statistics (DGBAS) cut Taiwan’s gross domestic product (GDP) growth forecast for 2023 from 3.05% to 2.75% due to ongoing global economic uncertainty. reduced to %.

In a statement, the DGBAS said in August that as sustained inflation, tightening global monetary policy, China’s zero-COVID policy, and the ongoing Russian-Ukrainian war continue to dampen global demand, the It said it was down 0.3 percent from its forecast.

DGBAS said slowing global business momentum combined with destocking will drag down Taiwan’s export growth.

A downward revision to commodity exports is the main factor contributing to the lower growth forecast for 2023, DGBAS notes.

Nevertheless, the economy is expected to recover gradually next year as the country is expected to see more international tourism and an increase in consumption after the easing of COVID-19-related border controls in October 2022. added.

However, the DGBAS is linked to US CHIPS and Science Act, which restricts the export of high-end chips to China and bans the manufacture of certain devices in China, as it has caused considerable uncertainty to Taiwan’s economy. We have singled out a similar proposal made by the European Union.

According to the DGBAS, the policies adopted by the United States, and possibly the EU, will directly affect exports to China by Taiwanese firms, and indirectly influence global customers’ orders from local manufacturers.

Similarly, the DGBAS revised Taiwan’s GDP growth rate for 2022 down by 0.7 percentage points to 3.06 percent.

The DGBAS also raised its forecast for Taiwan’s consumer price index (CPI) in 2023 to 1.86%, up 0.14 percentage points from its forecast in August.

https://focustaiwan.tw/business/202211290020 Taiwan cuts 2023 GDP growth forecast to 2.75%

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