Taiwan will reduce the problem of inflation expectations for the annual economic growt

(Taipei/Washington Comprehensive News) Taiwan has lowered economic growth expectations in 2023 for two consecutive quarters, showing the severe challenges facing economic operations.Bloomberg analysis believes that the continuous rise in inflation and the continuous deterioration economic situation may become a key issue in the 2024 Taiwan election.

According to the United Daily report, the latest economic forecasts on Friday (May 26) of the General Planning of the Taiwan Master Planning were 2.04%of the annual economic growth rate in 2023, a 0.08 percentage point of the 2.12%predicted in February this year.This is the minimum economic growth rate in the past eight years, and it is also the second time the Taiwan government has lowered the expected economic growth expectations this year.

In addition, Taiwan's official expected consumer price index (CPI) this year is 2.26 % of the annual growth rate, which is 0.1 percentage points compared to the previous forecast, showing that the inflation situation this year is dangerous.

In February this year, the Taiwan government lowered its annual economic growth to 2.12%, a decrease of 0.63 percentage points from the forecast value of 2.75%last year.At that time, the General General Office of Taiwan stated that the global economic growth rate slowed down, the trade volume fell sharply, and the exports of Taiwan were seriously affected, which was the main reason for the significant economic growth rate this year.

Taiwan will hold the presidential election in January next year. Bloomberg analysis believes that the Tsai Ing -wen government has lowered the expectations of economic growth throughout the year in the second year.The economic slowdown has led to the increase in dissatisfaction of the people.

The report quoted Sun Mingde, director of the Taiwan Institute of Economics and Research Institute, analyzed that all the DPP government can do is to suppress the price and control the unemployment rate and price as much as possible.He said that although Taiwan's inflation is milder than other Asian countries and regions, the people will not go to international comparisons, they will only compare with past experience. Taiwan officials should take the initiative to implement policies to reduce inflation.