HEADWINDS: Production value is expected to fall due to the US-China trade dispute, but should reverse up next year as the global economy recovers, the institute said

Taipei Times
Date: Oct 23, 2019
By: Lisa Wang  /  Staff reporter

The manufacturing sector’s production value is forecast to dip 2.93 percent annually to NT$18.94 trillion (US$619.1 billion) this year, as a prolonged US-China trade war and falling crude oil prices hurt exports, the Industrial Technology and Research Institute (ITRI, 工研院) said yesterday.

That was a downward revision from its May forecast of 0.02 percent growth to NT$19.56 trillion, the ITRI said.

An influx of new investments totaling NT$615 billion by Taiwanese manufacturers to move production out of China would not help this year’s output growth, as most of the capacity buildup would happen next year, or even later, it said.

“Since the beginning of this year, Taiwan’s export orders have shown some weakness due to the trade dispute between the US and China. The trade row has depressed external demand for goods made by Taiwanese companies,” ITRI manager Patrick Liou (劉名寰) said.    [FULL  STORY]