China Credit Rating estimates that Taiwan's economic growth rate will be 1.5% in 2023.

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[Reporter Wu Xintian/Report from Taipei] As the global demand declines, it will put pressure on my country's exports next year, and the semiconductor industry will bear the brunt of this wave of economic recession.

China Credit Rating believes that Taiwan's economic growth rate may slow down in 2023, and estimates that Taiwan's economic growth rate in 2023 will be 1.5%.

Exports are an important driver of Taiwan's economy, and weaker global growth could lead to a slowdown in exports.

S&P Global Ratings predicts that in 2023, the GDP of the United States may shrink slightly, and the GDP of the euro zone may grow at zero, which will affect Taiwan's economy.

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Taiwan's semiconductor industry will bear the brunt of the recession, while a drop in global demand could significantly hit non-tech industries, especially those related to commodities and consumer goods.

China Credit Rating expects that despite the challenges, Taiwan’s economy will maintain a moderate growth rate in the next few quarters due to the recovery of domestic consumption and tourism activities. It is estimated that Taiwan’s economic growth rate in 2023 should reach 1.5%, slightly lower than that of China Credit Rating. Estimates for Taiwan's 2022 annual economic growth rate of 2.5%.

However, overall economic uncertainties, including supply chain disruptions, inflationary pressures, geopolitical tensions and tight monetary policy, may affect companies' capital spending plans in the coming quarters.

According to China Credit Rating, Taiwanese companies face seven major risks in the next few quarters, including a slower-than-expected global economic slowdown, geopolitical tensions affecting trade and financial flows, higher borrowing costs affecting business operations, and difficulty in passing on costs that affect profit margins. , The epidemic has repeatedly affected economic recovery, natural disasters have threatened energy and food supplies, and threats from cyber attacks and digitalization have increased.

China Credit Rating also predicts that my country's central bank may still slightly raise interest rates next year, but the magnitude and pace are slower than other countries, because Taiwan's inflationary pressure is not as strong as other countries.

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