DRYING UP?Exports contracted 1.3 percent for the first two months of this year, but cheaper crude oil prices helped lower import costs, government data showed
Date: Mar 26, 2015
By: Crystal Hsu / Staff reporter
The ongoing drought poses a serious downside risk to the economy, which has achieved
stability as cheaper fuel expenses boost corporate profits and consumer spending, Yuanta-Polaris Research Institute (元大寶華研究院) said yesterday.
Water rationing could affect the output of major industries by up to 20 percent, removing as much as 0.825 percentage point from GDP growth this year — if the drought persists, institute chairman Liang Kuo-yuan (梁國源) said on the sidelines of a quarterly news conference.
However, the chances of that outcome coming to pass are diminishing amid this week’s precipitation and the upcoming monsoon season, the economist said. [FULL STORY]