Tai­wan cuts 2015, 2016 eco­nomic growth fore­casts

Kuwait Times - - BUSINESS -

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

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