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Published Date: 2020-07-15
Experts at
Taiwan’s top research institute, Academic Sinica, predict that Taiwan could see
economic growth of 1.15% this year. The Institute of Economics at Academic
Sinica released this latest projection on Wednesday.
Researchers say
that the COVID-19 pandemic has hit the global economy, and with it, Taiwan’s
foreign trade. However, they also say that Taiwan’s success in stopping
COVID-19 has combined with other factors to allow the domestic economy to begin
gradually recovering.
These other
factors include investment from Taiwanese businesses bringing back their
operations from overseas, a shift of export orders from China to Taiwan, and
government efforts to speed infrastructure projects and stimulate the economy.
Researchers at
Academia Sinica say that a government voucher program aimed at stimulating
consumption could be particularly effective. They say that looking at similar
programs in the past, they predict that the vouchers alone can be expected to
grow the economy by 0.4%.
However, they also
caution that risks to Taiwan’s economy remain. They say the US-China trade war,
geopolitical tensions, and financial markets weakened by debt are particular
risks to watch out for.