Taipei-based think tank Chung-Hua Institution for Economic Research (CIER) has lowered its forecast for Taiwan’s economic growth in 2016.
At a press conference on Wednesday, the think tank announced that it now predicts economic growth of 1.36% for the year. That’s down from an earlier prediction of 2.24%.
CIER President Wu Chung-shu said that the downward revision comes amid a weak global economy, weak domestic demand, and lowered growth forecasts elsewhere. However, Wu said that the second quarter could bring a return to economic growth. According to Wu, economic growth will easily surpass 1% this year.
The CIER says that a number of uncertainties including new developments in US interest rates, oil prices, major elections around the world and infectious diseases such as the Zika virus may impact Taiwan’s economy in the coming year.