Think tank Yuanta Polaris Research Institute cut its forecast for Taiwan’s 2016 GDP growth to 0.9% on Thursday. That’s down from a forecast of 1.42 percent in March. It is also the most pessimistic forecast issued by any think tank in Taiwan.
The president of Yuanta Polaris, Liang Kuo-yuan, said the reason for the revision is global economic slowdown and the new direction the Tsai administration has set for Taiwan’s economic development.
Liang said that all countries are going through a period of struggle when they should be working together to develop the global economy. He said that in Taiwan, the new government has emphasized the equal importance of domestic and external needs and that it will take time to see new economic development.
Liang said there are others factors that risk affecting the development of Taiwan’s economy. These include the United Kingdom’s decision on whether to remain in the European Union, the ongoing US presidential campaign, and possibility of future terror attacks.