Taiwan’s trade-driven economy is expected to slow to 2.1% this year on sluggish global growth, despite a steady rise in semiconductor exports as the island continues to dominate the world’s chipmaking industry. GDP should pick up pace again next year, accelerating to 3.5% in 2025.
While inflation is set to come in around 2% in 2023, the central bank is keeping an eye on living costs. Global commodity prices are falling, but Taiwan’s service sector prices, including travel and recreation, are up following the reopening of borders post-pandemic. Unemployment reached a 22-year low in February, according to the Directorate General of Budget, Accounting and Statistics, and is targeted at between 3% and 4% this year.
Read Michael’s full article on Forbes Asia here.