Economist says meeting 2% GDP growth rate will be tough
The Taiwan Institute of Economic Research (TIER) is warning that it will be a challenge for the government to reach its economic growth target of 2% for the year due to weakening global demand.
According to institute president Zhang Jien-yi, exports and export orders both fell for an eighth consecutive month in April. Zhang is attributing sustained inflation driven by US-China trade tensions, the coronavirus pandemic, and Russia's war in Ukraine, which has in turn led to weaker global demand, for the declines in exports and export orders. And he's warning that an export rebound is unlikely until the third or even fourth quarter, as the information and communications technology sector is under heavy pressure amid declining global demand for tech gadgets.
The government downgraded its forecast for GDP growth to 2.12% for 2023 in February and is scheduled to announce an update for its forecast this Friday.