Coronavirus: Taiwan’s economic outlook dims as Omicron outbreak casts a shadow over growth
- Analysts say the economic outlook for Taiwan has become more downbeat, with a new outbreak chilling consumption and signs exports may have peaked
- Taiwan’s government in late May lowered its full-year economic growth forecast to 3.91 per cent, down from 4.42 per cent which it announced in February
Taiwan’s economy, while ironclad during the first 18 months of the coronavirus pandemic, is facing friction due to the island’s worst ever spike in infections and lacklustre overseas demand for some tech hardware.
The Directorate-General of Budget, Accounting and Statistics in late May lowered its full-year gross domestic product (GDP) growth forecast to 3.91 per cent, down from the expected 4.42 per cent announced in February.
The economy grew 6.28 per cent in 2021, the fastest pace in more than a decade.
“The economic outlook has become more downbeat,” said Gareth Leather, senior emerging Asia economist with Capital Economics in London.
There are signs that exports, which have been a key driver of the recovery during the pandemic, have peaked
“There are signs that exports, which have been a key driver of the recovery during the pandemic, have peaked,” Leather said. “And although the government has stuck to its promise to keep the economy open during the current Omicron wave, activity still appears to have dropped off sharply.”