Taiwan’s Comptroller Chu Tse-min (朱澤民) says it is unlikely for Taiwan to follow the United States into a possible economic stagflation, as the U.S. market accounts for only 20 percent of the country’s exports. However, he advises people to remain cautious.
Chu's remarks come after former US Treasury Secretary Larry Summers warned of a 70% chance of the U.S. entering an economic recession within the next year.
Chu spoke at a legislative financial hearing on Wednesday and stated the U.S. market accounts for around 20 percent of Taiwan’s exports, with the remaining export markets being widely dispersed. He adds Taiwan is unlikely to experience stagflation, despite facing high risks of global inflation.
Chu also addresses the negative 3.02 percent growth in the first quarter, which is the lowest it has been in the last 14 years. Chu says he expects to see Taiwan’s economy return to normal once international trade resumes, which will likely occur in the third quarter.