Taiwan's economy will probably grow more slowly in 2023 than previously forecast, the government's statistics office said on Friday, as weakening global demand weighs heavily on its key technology exports.
The island's gross domestic product (GDP) is now expected to expand 2.04% in 2023 from last year, the Directorate General of Budget, Accounting and Statistics said, revising its earlier 2.12% growth forecast.
The statistics agency now sees 2023 exports falling 7.27% from last year, compared with a 5.84% slide predicted earlier. Taiwan's export orders slipped for an eighth straight month in April and missed forecasts.
First quarter GDP fell by a revised 2.87% year on year versus a preliminarily forecast 3.02% percent fall, the agency said, the worst performance since 2009.
Taiwan's economy has slipped into recession after contracting for two quarters in a row, and the central bank governor warned this week it may not rebound until the fourth quarter.
Governor Yang Chin-long said on Wednesday that policymakers will weigh both inflation and economic growth when making their next interest rate decision on June 15. It has raised rates five times since March last year.
The statistics office also revised upwards Taiwan's inflation outlook for 2023 to 2.26%, versus a previous forecast of 2.16%. (Reporting by Jeanny Kao and Faith Hung; Editing by Kim Coghill)