Central Bank expresses optimism over the outlook for Taiwan’s export-driven economy
Taiwan News
Date: 2018/11/05
By: Sophia Yang, Taiwan News, Staff Writer
The photo shows Taipei Xinyi District (Image courtesy of Flickr user Sinchen.Lin)
TAIPEI (Taiwan News) – Taiwan’s Central Bank recently laid out a list of four major risks facing the global economy for 2019 in a government publication, while it expressed optimism over the outlook for Taiwan’s export-driven economy.
In the latest issue of the Taiwan Banker, the monetary policy maker pointed out the four major risks to the world, including trade war uncertainty, higher borrowing costs following higher interest rates in the U.S., increased downside risk to China’s economy, and escalating geopolitical tensions as well as ambiguities.
The heightened trade tensions and uncertainties between the U.S. and its trading partners was named as the top risk for the next year, including a trade war with China, revision of a bilateral free trade agreement with South Korea, and NAFTA renegotiation with Mexico and Canada.
The second major risk laid out by the Central Bank is U.S. interest rate hikes which send the greenback stronger and the USD-denominated borrowing costs higher around the world, and that certain emerging economies are particularly vulnerable to the appreciation of USD and have become prey for speculators. [FULL STORY]
