PILLARS OF GROWTH: The NT$375 billion to be invested by repatriating firms would support growth, although not all of the companies will implement their plans this year
Date: Jun 20, 2019
By: Kao Shih-ching / Staff reporter
Taiwan’s economy is expected to improve in the third quarter on the back of robust investment and private consumption, while the central bank is likely to keep interest rates unchanged by the end of this year, Cathay Financial Holding Co (國泰金控) said yesterday.
The economy is likely to bottom out this quarter, instead of in the first quarter previously predicted by the team, as exports were weaker than expected, said Hsu Chih-chiang (徐之強), an economics professor at National Central University who heads a research team commissioned by Cathay Financial.
“While we previously expected a decline in exports to taper in the second quarter, US President Donald Trump’s tweets last month and his lifting of tariffs from 10 to 25 percent have weakened global trade, including in Taiwan,” Hsu told a news conference in Taipei.
Exports have contracted year-on-year for seven consecutive months through last month, as an increase in exports to the US could not offset a shipment decrease to China, Hsu said. [FULL STORY]