The Taiwan Institute of Economic Research has raised its economic growth forecast for 2020 to 2.67%. The think tank published its latest forecast Wednesday. This figure is up 0.22 percentage points from a previous prediction the think tank made in November.
Institute economist Chang Chien-yi says that while uncertainties spawned by the US-China trade war have prompted many global think tanks to downgrade their 2020 predictions, this lowering of forecasts is limited.
Chang says the economies of emerging markets and developing countries are expected to outdo their performance last year. He says their performance will offset the risks posed by the trade war.
Chang also says that Taiwan’s economy will continue to grow. That’s because a higher minimum wage, the Taiwan stock exchange’s stable fundamentals, and investments made by Taiwanese businesspeople returning from China will help improve the local job market and boost domestic consumption.
Despite the positive outlook, however, Chang says that there are other uncertainties such as the geopolitical tensions, the spread of African swine fever, and the ongoing outbreak of a new strain of coronavirus.