Tai­wan fore­casts fur­ther eco­nomic woes dragged by global slow­down

Pakistan Observer - - ECONOMY WATCH -

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

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