Taiwan's economy is expected to expand this year at a slower pace than last year's 5.7 percent, with interest rates likely to rise by as much as half a percentage point, analysts from three rating companies said.
"Taiwan's economic growth is slowing down, the cycle is definitely not favorable," Jonathan Lee (
"2005 will be a difficult year," he said.
Lee said the economy is likely to grow 3.7 percent this year and 4.1 percent next year.
The government on Aug. 18 lifted its economic growth forecast for next year to 3.65 percent, from 3.63 percent, citing robust consumer spending.
"I doubt that Taiwan's GDP can grow 3.65 percent this year," said Jerry Chien (
Tony Tsai (
"If we consider Taiwan as a company, we see more strategy talking rather than execution," Tsai said in the same briefing. "The government should have done much more to stimulate the economy," he said.
Both Moody's and Taiwan Ratings declined to make a forecast for Taiwan's economic growth.
Taiwan Ratings and Fitch expect the central bank to raise interest rates further to keep inflation in check.
Tsai sees a rate increase of no more than half a percentage point by the end of next year, while Lee expects a rise of about 30 basis points by next year from the current 2.125 percent. A basis point is 0.01 percentage point.
"With GDP growth next year expected to remain at about the same as this year, the rate increase should be only half of the Federal Reserve Fund rate's pace," Tsai said.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Tokyo Electron's Taiwan unit today said in a written response that it respects the judicial process, takes the court ruling seriously and would not appeal in the Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) trade secrets case. Last month, a court fined the Taiwan unit of Japan's Tokyo Electron NT$150 million (US$4.74 million) in a case involving trade secrets related to TSMC's sensitive chip technology.
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS