Taiwan Slides Deeper Into Recession
World Economy

Taiwan Slides Deeper Into Recession

Taiwan’s gross domestic product contracted at an annual rate of 0.52% in the fourth quarter of 2015—steeper than the previous estimate of 0.28%—as the country’s export-led economy reeled under slowing demand from China. The data marks the second consecutive quarter of contraction in the Taiwanese economy—the definition of a technical recession—after a drop of 0.8% in the July to September quarter.
For the whole of 2015, the growth rate was pegged at a tepid 0.75%—the country’s slowest annual growth in at least six years, IBTimes reported.
Furthermore, the government also cut the GDP growth forecast for 2016 to a 1.47% expansion from an earlier projection of 2.32%.
Taiwanese economy has been battered by slowing growth in China—its biggest market that accounts for a quarter of its exports. Data released Monday showed that Taiwan’s exports in January slid for the 12th straight month, dropping 13%, to $22.2 billion from $25.5 billion a year earlier.
Exports to China and Hong Kong, which cumulatively account for over 38% of Taiwan’s exports, plunged 19.3% in January from the previous year to $8.6 billion.
“Demand from international markets was weak, orders from semiconductor industry clients were conservative, and oil and steel prices kept hovering at low levels,” Taiwan’s finance ministry said.
“Looking ahead, the global economic outlook is opaque—competition is getting stiffer, raw industrial and agricultural material prices are on the decline. Also weighing down Taiwan’s export outlook is mainland China’s supply glut and the push to develop its own supply chains.”
On Tuesday, Taiwan’s government also trimmed the forecast for exports in 2016, underscoring concerns that weakness in the country’s economy may persist in the first half of this year. Exports are now expected to decline 2.78%, rather than increase 1.97% as previously estimated.

Short URL : http://goo.gl/TbdcwG
  1. http://goo.gl/U6qFFv
  • http://goo.gl/ycmcz2

You can also read ...

More and more Thai merchants are integrating WeChat Pay and Alipay’s systems to cater to tourists.
The internet has changed the way most people live. Through...
Cambodia’s economic outlook remains positive, but is subject to downside risks.
The IMF Managing Director Christine Lagarde expressed optimism...
More India Bank Frauds Revealed
Over 25,800 fraud cases involving about Rs179 crore ($1.79...
Qatar Calls to Investigate UAE Bank’s Bogus Deals
Qatar has asked US regulators to investigate the US subsidiary...
Free trade achieves more good for the planet.
US President Donald Trump’s steel tariffs have brought the...
Morocco Currency Reform on Right Track
Few weeks after the launch of the gradual dirham float, the...
EU Readies Tax on US Technological Titans
The European Union will next week unveil plans for a digital...
Apparel imports from ASEAN are growing, spurred by low labor costs  in such countries as Vietnam.
Import prices for apparel and daily goods in Japan plunged...