Momentum Slows Two key institutions in April trimmed their forecasts for Taiwan’s GDP growth in 2019, citing falling exports as global demand for consumer electronics slumped amid a prolonged U.S.-China trade war. Standard Chartered Bank cut an earlier GDP forecast of 2.5% to 2.1%, with its chief Taiwan-based economist saying that the first quarter’s 4.2%…
2019 Off to Slow Start Central banks throughout the world have been in a holding pattern amid a global economic slowdown and a protracted, bitter trade war between the U.S. and China. The U.S. Federal Reserve in late March announced that it will not increase rates during 2019. The Bank of England is unlikely to…
A new study by a leading economist concludes that policy choices were responsible for the economic slowdown. China’s slowing economy is not a big worry only for Taiwan. Much of the rest of the world has grown increasingly dependent on the Chinese playing a key role powering global growth. Some economists say that China’s booming…
Growth Forecasts Cut “The economy is losing steam, but is not in a recessionary state,” Minister Chu Tzer-ming of the Directorate General of Budget, Accounting and Statistics told a mid-February news conference. He reported that DGBAS is now forecasting GDP growth for Taiwan of 2.27% this year, down from the 2.41% it was predicting last…
AmCham Taipei’s Private Equity Committee suspended operations in late 2017 in frustration over the difficulty PE firms were facing in Taiwan in gaining approval for investment applications. In a number of cases over the previous six years, investment plans by PE companies had been either rejected outright or stalled so long that the prospective investor…
Taiwan needs to be prepared to face a challenging year in 2019. That’s one of several key messages from AmCham Taipei’s recently released Business Climate Survey. Notably fewer of our member executives – about 45% compared to 55% a year ago — expressed confidence in the economic outlook for the coming 12 months. Significantly, however,…
Feeling the Pinch With the global trade environment growing increasingly uncertain, Taiwan recorded exports worth US$28.6 billion in December, 3% less than in the same month a year earlier. The Ministry of Finance attributed the dip largely to sluggish demand for semiconductors used in manufacturing smartphones. New export orders received in December told a similar…
More Mixed Signals The release of Taiwan’s September trade figures brought some good news – a record monthly level for exports – but any exuberance was dimmed by uncertainties about the potential impact of the “trade war” being waged between the United States and China, given the large number of Taiwanese enterprises with production facilities…
U.S.-China Trade War Draws Attention News reports indicate that at a number of Taiwanese firms are considering abandoning their Chinese production bases and returning to Taiwan to avoid being caught in the U.S.-China trade war. Although Taiwan has not been directly targeted by either country, many Taiwanese manufacturers have moved their production sites to China,…
Positive Indications on the Trade Front Given Taiwan’s heavy reliance on international trade for its economic momentum, the past several weeks brought some encouraging news. Announcement of Taiwan’s trade figures for July showed that exports had continued to increase for the fifth consecutive month. At US$29.36 billion, export value in July was 4.7% higher than…
