IMF cuts Taiwan's growth forecast for 2013
WASHINGTON, CNAWASHINGTON -- The International Monetary Fund (IMF) in its latest report revised downward its 2013 growth projection for Taiwan's economy to 2.2 percent, ranking it at the bottom of Asia's four “little dragons,” mainly due to the country's sluggish exports and lack of private investment.
October 9, 2013, 12:07 am TWN
The IMF published its World Economic Outlook report Tuesday, in which it trimmed its 2013 forecast for global growth to 2.9 percent from the 3.1 percent it forecast in July.
It also forecast that global growth will rise to 3.6 percent in 2014.
The IMF indicated that since global economic growth is still slackening, the risk of an economic downward spiral remains. China and various emerging economies are growing more slowly than expected, it said.
The IMF also said that developed economies have strengthened, whereas the emerging economies have weakened.
China's downshift might affect other countries, “notably commodity exporters in the emerging markets and the developing economies” in Asia such as Taiwan and South Korea, which are expected to register weaker-than-expected economic performance, according to the report.
The IMF in April scaled down its 2013 growth forecast for export-oriented Taiwan to 3 percent, and then further cut its forecast for Taiwan's growth again this month by 0.8 percentage points to 2.2 percent, close to the 2.31 percent predicted by the government.