The Chung-Hua Institute for Economic Research (CIER) is predicting that Taiwan’s economic growth for the year will reach 6.05%. It is also forecasting that Taiwan can expect economic growth of 3.67% next year.
If these predictions come true, Taiwan will have seen four consecutive years with economic growth of more than 3%.
CIER has also released predictions about Taiwan’s Consumer Price Index. It says that inflation has led companies to pass on costs to consumers, leading to a growing sense of rising prices. It predicts that the Taiwan Consumer Price Index will rise by 1.9% this year and 1.77% next year.
Important factors that will determine how close to the mark these predictions come will be the price of oil and staple commodities, as well as how well supply chain issues are resolved.
CIER says that factors ranging from COVID-19 variants, monetary policy in major economies, and inflationary pressure to global energy supplies and a slowing down of the global economy are still variables that could impact Taiwanese businesses in the coming year.