Taipei, The Chung-Hua Institution for Economic Research (CIER) lifted its forecast for Taiwan's gross domestic product (GDP) in 2018 to 2.48 percent Wednesday, but cautioned that the country's economic momentum would slow in the second half of the year.
The latest forecast is 0.01 percentage points higher than the previous one issued in April, reflecting the steadily improving economy in the first half of the year, said CIER President Wu Chung-shu (???).
However, growth potential is expected to slow down in the second half of the year, Wu said, pointing to the ongoing trade war between the United States and China and geopolitical disputes in some parts of the world.
As a result of the rising prices of raw materials on the world market, falling foreign demand and a higher comparison base in the same period last year, Taiwan's GDP will grow at a slower pace for the rest of the year.
As such, private consumption and investment will become the major driver of the domestic economy, he said.
The world economy will also slow in the second half of 2018, which Wu said is normal after an expansion, though the mild adjustment forecast by international agencies is unlikely to impact the domestic economy, he added.
Source: Focus Taiwan News Channel