Economists waiting to see how long epidemic lasts
By: Matthew Strong, Taiwan News, Staff Writer
Already, the global economy has been feeling the shadow of the epidemic with falling oil prices, extreme instability in the stock markets, and a drop in consumer confidence.
According to a Central Bank report, a plunge in consumption leading to an oversupply of products might easily result in deflation, with prices continuing to fall, CNA reported. Simultaneously, production will fall, wages will shrink, and interest rates and stock prices will plunge.
Predictions for Taiwan’s GDP growth in 2020 have already been slashed, with the government cutting estimates by 0.35 percent to 2.37 percent. Some analysts have even forecast growth dropping below 2 percent. [FULL STORY]