CIER upgrades yearly GDP forecast to 3.96 percentBALANCED GROWTH: The institute said achieving 4 percent GDP growth this year was difficult, but not impossible, due to monetary tightening and rising inflationBy Crystal Hsu / Staff reporterThe Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year to 3.96 percent, saying that achieving 4 percent growth would be difficult amid worsening inflation, tight monetary policies and geopolitical tensions. Photo: CNAThe CIER’s latest forecast, which it based on strong growth in exports and private investment, also put the institute at odds with the IMF, which on Tuesday cut its forecast for Taiwan’s GDP growth by 0.1 percentage points to 3.2 percent. However, uncertainty persists due to the Russia-Ukraine war, worsening inflation, faster interest rate hikes globally and spreading lockdowns in China, which accounts for about 40 percent of Taiwan’s exports. Intensifying downside risks make GDP growth of 4 percent increasingly difficult, although not impossible, depending on how unfavorable factors turn out, the academic said. Taiwan’s exports and imports might expand 17.25 percent and 17.42 percent annually this year, softening from 29.34 percent and 33.32 percent last year respectively, CIER said.

Source: Taipei Times April 21, 2022 04:11 UTC