Taiwan cuts 2015, 2016 economic growth forecasts
TAIPEI: Taiwan yesterday cut its growth forecast for 2015 for the second time since August, to 1.06 percent, while also lowering expectations for next year amid slumping exports.
The full-year figure was adjusted down 0.50 percentage points from August when the Directorate General of Budget, Accounting and Statistics made the previous estimate.
“External demand growth remains weak... also inventories of consumer electronics continue to be in an adjustment phase,” the government agency said in a statement. Taiwan has been struggling to spur growth in its export-focused economy, which has suffered with a slow recovery from the global financial crisis while also facing stiffer competition in the key tech sector.
It also trimmed its 2016 forecast to growth of 2.32 percent, from an earlier estimate of 2.7 percent. Taiwan rolled out a Tw$4.08 billion ($124.9 million) stimulus package earlier this month to help boost consumer spending, after its economy shrank for the first time in six years in the third quarter. Despite the measureswhich includes subsidies for domestic travel and home appliances-growth forecast for the fourth quarter of 2015 was also slashed by 1.41 percentage points to 0.49 percent. — AFP