By Ted Chen / Staff reporterCathay Financial Holding Co (國泰金控) yesterday said it expects GDP growth next year to slow to 2 percent from 2.1 percent this year, as the expansion phase for the nation’s business cycle nears its conclusion in the absense of clear global growth catalysts. “The nation’s business cycle is estimated to have entered its expansionary phase in October of 2015 and we are approaching the end of the growth period, which is predicted to last between 24 and 37 months,” said National Central University economics professor Hsu Chih-chiang (徐之強), who led the research team. Much like other major markets such as the US, China and Europe, where the pace of growth has started to stabilize following a long expansionary period in their business cycles, Taiwan’s most recent expansion cycle has been tepid, Hsu said. Meanwhile, economic growth would be dependent on whether the reshuffled Cabinet’s policies could produce a tangible stimulus, Hsu said. “A real shock is needed to jolt the economy back to life, such as bigger and consecutive public sector wage hikes,” Kuan said.

Source: Taipei Times September 25, 2017 15:56 UTC