Taiwan Institute of Economics (TIER) has revised its domestic growth rate forecast by 0.65 percentage points to 1.66%, predicting a cooler economic growth in the second half of the year.
According to the Institute, while Taiwan’s domestic economy in the first half of 2023 is supported by robust private consumption, the sluggish global demand has forced local manufacturers to make inventory adjustments and pull back on export growth.
The TIER Macroeconomic Forecasting Center Director Sun Ming-der (孫明德) says the public will likely not feel the the pinch of TIER’s revised forecast as consumer spending remains strong. He adds that while the Institute has revised the growth rate to a lower level, the overall economic condition is actually better compared to the exaggerated 6% growth in the past two years.
However, Sun also warns that Taiwan’s economic outlook in the second half of the year may be affected by other uncertain factors, including supply chain stability, potential escalation of the US-China tech war, ongoing inflation, and the severe climate change.