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Taiwan 2020 economic growth forecast downgraded

Xinhua | Updated: 2020-07-17 15:11
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TAIPEI -- A leading research institution in Taiwan on Wednesday lowered its forecast for the island's 2020 economic growth to 1.15 percent, from the 2.58-percent estimate made in December.

Due to the impact of the COVID-19 pandemic, stagnant overseas demand and weak local consumption have undermined Taiwan's economy, said the Institute of Economics of Academia Sinica in Taiwan in a statement.

In the second half of this year, the global economy may be slow to recover from the setback caused by the pandemic and continue dampening export momentum in Taiwan. However, the island's economy may gradually recover with its thriving high-tech industries and expansion of public spending, the statement said.

Academia Sinica said it expects private consumption in Taiwan to fall by 0.3 percent in 2020, compared with an earlier estimate of a 2.01-percent increase, due to cautious consumer spending on expenses such as traveling, lodging, and entertainment.

Private investment is forecast to grow by 2.05 percent, a downgrade from an earlier estimated 3.67 percent increase, it said.

The Taiwan-based Chung-Hua Institution for Economic Research also revised its economic growth forecast for 2020 recently to 1.03 percent, down from the 2.44-percent forecast it made in December last year.

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