Taiwan cuts 2023 GDP growth forecast to 1.61% on weak exports

TAIWAN’S economy will probably grow more slowly in 2023 than previously forecast, the government’s statistics office said on Friday (Aug 18), held back by soft demand for its technology products amid global economic woes.

The island’s gross domestic product (GDP) is now expected to expand 1.61 per cent in 2023 from last year, the Directorate General of Budget, Accounting and Statistics said, revising its earlier 2.04 per cent growth forecast.

The statistics agency now sees 2023 exports falling 9.51 per cent from last year, compared with a 7.27 per cent slide predicted earlier.

For 2024, GDP is expected to grow 3.32 per cent, the agency said, offering its first forecast for next year.

Second-quarter GDP rose by a revised 1.36 per cent year on year versus a preliminarily reading of a 1.45 per cent expansion, the agency said, returning to growth after two quarters in a row of contraction.

Taiwan, home to major tech companies including the world’s largest contract chip maker TSMC, has seen its exports slide amid interest rate hikes around the world in response to rising inflation and growing US-China trade tensions.

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In July, Taiwan’s exports fell for an 11th straight month as weak demand from the US and China was countered by growing momentum in artificial intelligence applications. The government has said growth in exports may resume from September, though more likely from November. REUTERS