The International Monetary Fund (IMF) has raised its forecast for growth in Taiwan’s gross domestic product (GDP) for 2022 to 3.3 percent, up 0.1 percentage points from its most recent estimate early this year.
In its October 2022 World Economic Outlook (WEO) report issued on Tuesday, the IMF indicated that the global economy is experiencing a number of turbulent challenges shaped by the lingering effects of the Russian invasion of Ukraine and tightening financial conditions in most regions.
In addition, the highest inflation for several decades and the lingering COVID-19 pandemic all weigh heavily on the outlook, according to the report.
As a result, global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023, the report said.
Global inflation is expected to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to fall to 6.5 percent in 2023 and to 4.1 percent by 2024, it said.
Although the IMF raised its forecast for Taiwan’s GDP growth this year to 3.3 percent, up 0.1 percentage points from its April estimate, it cut its growth projection for Taiwan’s economy next year to 2.8 percent, a downgrade of 0.1 percentage points.
As for inflation, the IMF projected Taiwan’s consumer price index (CPI) will rise 3.1 percent this year and 2.2 percent next year, lower than the global level, while the nation’s unemployment rate is forecast to be 3.6 percent this year and next year.
Of the major economies in Asia, China’s GDP growth is expected to slow from 8.1 percent in 2021 to 3.2 percent in 2022 and 4.4 percent in 2023, while its CPI is forecast to rise 2.2 percent in 2022 and 2023.
Elsewhere in Asia, Japan’s GDP is expected to grow 1.7 percent in 2022 and 1.6 percent in 2023, while its CPI is forecast to increase 2.0 percent this year and 1.4 percent next year.
South Korea’s economy is forecast to grow 2.6 percent this year and 2.0 percent next year, while its CPI will increase 5.5 percent this year and 3.8 percent next year, according to the IMF.
The IMF also forecast that Singapore’s GDP will grow 3.0 percent in 2022 and 2.3 percent in 2023, while Hong Kong’s economy is expected to see negative growth of minus 0.8 percent this year and growth of 3.9 percent next year.
Source: Focus Taiwan News Channel