ANZ cuts GDP growth forecast for fourth time
September 5, 2012, 12:09 am TWN
TAIPEI--Australia and New Zealand Banking Group Ltd. (ANZ) cut its forecast Tuesday for Taiwan's economic growth for 2012 for the fourth time this year, citing weak domestic growth in the first half of the year and lingering global economic concerns.
ANZ adjusted downward its forecast for Taiwan's gross domestic product (GDP) growth to 2.4 percent, down 0.1 percentage points from its previous estimate of 2.5 percent in late August.
However, the group's forecast is still higher than those of other local and foreign banks. The latest figures from Cathay Financial Holdings Co., Citibank and DBS Bank of Singapore stood at 1.47 percent, 1.9 percent and 2 percent, respectively.
Taiwan's government also cut its 2012 GDP growth forecast to 1.66 percent last month, from a previous estimate of 2.08 percent, amid a weakening global economy.
Raymond Yeung, a senior economist at ANZ, said the reason why he is not as conservative is that he foresaw “an obvious rebound” in China's economy in the final quarter of the year, which will drive Taiwan's export-oriented economy.