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Taiwan cuts GDP forecast to 1.06 percent

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Staff writer ▼ | May 28, 2016
Taiwan's official statistics agency has lowered its forecast for Taiwan's gross domestic product (GDP) growth for 2016 to 1.06 percent.
Asian economy   Economy in Taiwan remains slow
The latest forecast was 0.41 percentage points lower than the previous estimate of 1.47 percent growth made by the Directorate General of Budget, Accounting and Statistics (DGBAS) in February, as weakening global demand continues to weigh on Taiwan's exports, which are the backbone of the country's economy.

The latest figure, while a downward adjustment, came as good news for some due to their low expectations. Premier Lin Chuan said in early May that the nation is unlikely to achieve 1-percent GDP growth this year, and even risks recording negative growth.

The National Development Council (NDC) said that Taiwan's economy remains slow, although the latest data shows that local fundamentals flashed a yellow-blue light in April, improving from a blue light in March.

The NDC said that the overall composite score of monitoring indicators for April rose one point from a month earlier to 17 to flash a yellow-blue light, because machinery and electric equipment imports rose and returned to the green light category from a yellow-blue light.

The April index stopped a 10-month blue-light streak for the local economy, but the NDC warned that the local economy remains weak.

Consumer confidence in Taiwan was haunted by weakness in the local economy in May, sending the country's consumer confidence index (CCI) to its lowest level in more than two years, according to National Central University (NCU).

The CCI in May fell 0.55 points from a month earlier to 79.82, dipping below 80 for the first time since December 2013, when the index was at 78.22, said the university, which conducts the survey that underpins the monthly index.