Ray Chou (周雨田), an adjunct research fellow at the institute, said Taiwan's economy in 2023 is likely to be characterized by 'dramatically shrunk external demand and slowing growth.'Ĭompanies are expected to roll back investment and capital expenditure in 2023 amid a global economic slowdown, which is forecast to drive real private investment growth down to 1.95 percent from 7.15 percent in 2022, Chou said.

The institute's forecast for economic growth in 2023 is currently the most pessimistic among financial institutions and research institutes, with the Taiwan Institute of Economic Research forecasting 2.91 percent, the Directorate-General of Budget, Accounting and Statistics 2.75 percent, Chung-Hwa Institution for Economic Research 2.72 percent and the central bank 2.53 percent. The institute also significantly lowered its projected economic growth for 2022 from 3.52 percent to 2.94 percent due to inflation and countries around the world adopting tighter monetary policies.Īlthough Taiwan's reopening of its border in October has pushed up consumption to some extent, manufacturers are still struggling to move inventory due to sluggish demand worldwide, which also contributed to the bleak outlook on economic growth for the upcoming year, the institute added. Meanwhile, with the war in Ukraine fueling inflation worldwide, the institute forecast the consumer price index (CPI) will remain high at 2.15 percent. 22 (CNA) The Academia Sinica Institute of Economics on Thursday forecast that Taiwan's economic growth for 2023 will be 2.41 percent, the most pessimistic in a series of recent forecasts indicating the growth will be below 3 percent.

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