ADB cuts Taiwan growth forecast

Staff writer, with CNA

Tue, Jul 19, 2016 - Page 12

The Asian Development Bank (ADB) has revised downward its forecast for Taiwan’s economic growth for this year from a March estimate of 1.6 percent to 1.1 percent, attributing the adjustment mainly to the nation’s weak economy in the first quarter, according to a report released yesterday.

The growth forecast for Taiwan is the lowest among the four “Asian Tigers,” lagging behind the 2.6 percent forecast for South Korea, 2.2 percent for Singapore and 1.5 percent for Hong Kong, according to the Asian Development Outlook 2016 report.

Taiwan’s export-driven economy contracted by 0.7 percent in the first quarter of this year, as demand for goods remained sluggish, the report said.

Capital and inventory investment contracted in response to increasing political uncertainty, it said.

Private and government consumption was unable to offset the slowdown in trade and investment, it said, adding that the latest indicators from the second quarter confirm that economic activity continued to be weak.

As immediate recovery looks unlikely, the growth forecast for Taiwan is downgraded from 1.8 percent to 1.6 percent next year, the report said.