Cabinet warns about possible downturn
The cabinet is warning that a possible global economic downturn will affect Taiwan. Cabinet spokesman Luo Ping-cheng warned that interest rate hikes by central banks and geopolitical tensions have depressed global markets, and that negativity has spread to Tai-Ex, but the local fundamentals of the local stock market remain solid.
Luo says Premier Su Tseng-chang has appointed Vice Premier Shen Rong-jin to head an inter-ministerial committee to closely monitor the island's stock market and possible inflationary pressure.
The cabinet spokesman said the International Monetary Fund's forecast for Taiwan's GDP growth this year is 3.3% and 2.8% for 2023 and that shows the island is outperforming the global average for the fifth consecutive year.
Luo also stressed that Taiwan's economy grew in terms of real output, fixed investments and consumption this year Taiwan still has a lower inflation rate than other major economies.
The government has said it will take measures to ease pressure on the economy and believes the reopening of the island's borders to quarantine free travel will help revitalize the economy.