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Taiwan’s economy still not out of the woods

Recent data from Taiwan have been mixed, with exports showing signs of life but consumer demand softening. We think the economy will weaken in the near-term as any further support from export demand is likely to be offset by falling inventories and slower consumption growth. Our forecast for just 0.2% GDP growth in 2023 is well below the consensus projection of 1% and would mark worst outturn since the Global Financial Crisis.

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