Taiwan economy forecast to shrink 1% in 2020

Focus Taiwan
Date: 06/03/2020
By: Pan Tzu-yu and Frances Huang

Taipei, June 3 (CNA) Singapore-based DBS Bank on Wednesday retained its forecast of a 1 percent contraction of Taiwan's gross domestic product (GDP) in 2020, citing the impact of the COVID-19 pandemic.

In a statement, DBS said Taiwan's economic development in the second half of the year is likely to remain under the shadow of a deteriorating job market, in which the number of furloughed workers has been increasing, and amid rising tensions between the United States and China.

In its forecast, DBS said that in the second half of the year, businesses in Taiwan that are reliant on domestic demand will see only a moderate rebound due to job losses and decreased income among consumers, despite the outlook that Taiwan will soon lift some of its restrictions pertaining to public gatherings and social distancing.

Some of the businesses hardest hit hardest by COVID-19 have been manufacturers in the old economy sector, retailers, and food/beverage vendors, as the coronavirus outbreak has forced many people to stay home and has sent crude oil prices plunging, the bank said.
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