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19 April 2024

Taiwan’s economy to contract 11 per cent due to collapse in exports

Unemployed people seek consultation at an employment service centre in Taipei. (REUTERS)

Investment firm CLSA Asia-Pacific Markets says Taiwan’s economy will contract by 11 per cent this year, the worst among all Asian economies.

CLSA’s estimate contrasted sharply with the Taiwanese government forecast, released on Wednesday, of a two percentage point growth rate in 2009. Taiwan’s Ministry of Economic Affairs and Council for Economic Planning and Development had no immediate comments on the CLSA report.

CLSA keyed its estimate to a collapse in Taiwanese exports ‘the main engine of the island’s economic growth’ and a fall in its investment and domestic spending. In its report, CLSA also predicted rough sledding for other economies in the region.