Taiwan is one of just three major Asian economies that will maintain positive growth in 2020. The other two are China and Vietnam.
The statistics branch of Taiwan’s Cabinet reported on October 30 that Taiwan’s GDP growth in the third-quarter was 3.33%. It said that Taiwan outperformed the forecast it made back in August by 1.32 percentage points.
Singapore-based DBS Bank has adjusted its outlook for Taiwan’s 2020 GDP growth to 1.8%. Originally, the bank had Taiwan slated for 0% growth for the year. DBS says that Taiwan recovered from the initial economic impact of the COVID-19 pandemic in the third-quarter.
Now that Taiwan’s situation has stabilized, DBS expects performance to level-out due to reduced orders from Chinese telecom company Huawei and unpredictable demand for Taiwanese exports.
Due to Taiwan’s outstanding third-quarter performance, DBS has also changed its GDP growth forecast for the country next year from 2.9% to 4.2%.