TAIPEI, Aug. 14 (Xinhua) -- Taiwan's statistics agency on Friday lowered its forecast for the island's gross domestic product (GDP) growth in 2020 to 1.56 percent from the 1.67 percent estimate made in May.
The island's GDP growth in the first half of this year stood at 0.78 percent, the agency said in a press release, adding that the GDP growth for the third and fourth quarters may be 2.01 percent and 2.56 percent, respectively.
The agency estimated that Taiwan's merchandise exports in 2020 may drop 0.1 percent from that of 2019 since the COVID-19 pandemic has significantly contained the international demand for Taiwan's traditional export goods, though its exports of high-tech products have remained steady.
Private consumption was forecast to decrease by 1.44 percent in 2020 due to epidemic control policies, but private investment may increase by 2.41 percent due to increasing investment from local semiconductor manufacturers and investment in 5G networks by telecom firms, the statement said.
The consumer price index (CPI) for 2020 was expected to decline by 0.19 percent.
The island's economic performance will largely depend on whether the COVID-19 pandemic can be effectively contained and epidemic control policies of major economies, the agency said.
Taiwan's economy will also see uncertainty due to the prices of oil and raw materials in international markets, it added. Enditem