Taiwan trims 2019 GDP forecast slightly on slower tech demand

28, May. 2019

20190527_0006.jpg

TAIPEI, NNA – Taiwan’s government has trimmed its growth forecast for this year to 2.19 percent from 2.27 percent projected in February amid sluggish global demand for semiconductors used for smartphones and computers.

The revision Friday followed a cut to the official GDP forecast in February from 2.41 percent made in November.

Data released last month showed Taiwan’s economic growth decelerated for the third consecutive quarter in January-March to its slowest pace in more than two years. GDP grew 1.72 percent from a year earlier in Q1, slowing from 1.78 percent in Q4 of 2018.

In 2018, the economy expanded 2.63 percent.

For 2019, the government expects Taiwan’s exports to decline 1.17 percent from 2018, when they grew 5.88 percent.

Capital investment is projected to rise 5.39 percent this year, up from 2.47 percent in 2018. Capex increases are expected in the green energy and semiconductor sectors.

Some Taiwanese firms are relocating factories back to Taiwan from China to alleviate the impact of higher tariffs on their shipments from China to the U.S. market amid the trade dispute between the world’s two largest economies.