What’s Taiwan’s economic outlook for 2022? Analysts at Taiwan’s top research institute have some good news and some bad news.
First, the good news. Researchers at Academia Sinica predict that Taiwan’s economy will grow 3.85% next year. But now, for the bad news: that growth will come with inflation that will hit wallets across the country.
In their latest forecast, Academia Sinica researchers are predicting that Taiwan’s Consumer Price Index will rise 2.04% in 2022.
The rising cost of raw materials is in part to blame, but so too is the dizzying price of real estate. Even those not in the market for a home will feel the pinch of inflation next year: with rising prices will likely come rising rents.
Academia Sinica economist Chou Yeutien says that some increase in prices is actually good for economic recovery. But that will be little consolation for Taiwan’s consumers as they find their purchasing power squeezed over the coming year.