S&P forecasts 2.8% GDP growth amid export jittersBy Crystal Hsu / Staff reporterS&P Global Ratings yesterday kept its forecast for Taiwan’s GDP growth this year at 2.8 percent, in contrast to last year’s 6.6 percent growth, as global inflation and geopolitical tensions hit export sectors while a recovery in domestic demand stalls. Persistent high inflationary pressure due to energy and raw material price increases, and supply chain disruptions pose the biggest challenge for Taiwanese companies and is squeezing their profit margin, Taiwan Ratings said. Taiwan’s export growth over the past couple of months and growing capital expenditure are showing signs of a slowdown, as economic uncertainties intensify, it said. Separately, Fitch Ratings said on Monday that the operating environment and credit profiles of local banks remained stable, despite interest rate hikes that affect property-related lending. Regulatory tightening in property loans since December 2020 would tame loan growth over the next 18 months, it said.
