Taiwan forecasts further economic woes dragged by global slowdown
TAIPEI—Taiwan lowered its annual growth forecast Friday as the trade-reliant economy took a hit from global sluggishness and slowing investment in the private sector. Gross domestic product is now estimated to grow 1.06 percent in 2016, 0.41 percentage points lower than the previous forecast made in February, the government said. “The primary causes were weak demand from abroad and lower-than-expected investment in the private sector,” the Directorate General of Budget, Accounting and Statistics said in a statement.
But the top government budgeting body adjusted its GDP growth slightly upward for the first quarter, saying GDP fell 0.68 percent in the three months to March. Last month it said the economy contracted 0.84 percent in the first quarter. Despite the adjustment, the outlook for the domestic economy remains gloomy in the second half of the year. The budgeting body forecast that “exports will not resume growth until the third quarter after declines for six consecutive quarters”. “World economies have been losing momentum as demand for consumer electronic products are in decline,” it said.—AFP