Taiwan's economy is expected to grow only mildly in 2016 and 2017 as bleak global outlook saps prospects for the island's export-driven economy, a think tank report has said.
The gross domestic product (GDP) of Taiwan is expected to grow 1.26 percent this year and will accelerate to 1.74 percent next year, the Taiwan Research Institute said in a report released on Thursday.
Since mid-2016, due to lower comparison basis a year ago, a range of economic indicators such as export orders and industrial production had ended negative growth, the report said.
However, less than two percent growth in GDP is not enough for people to feel its impact and a growth rate of at least three percent is significant, economists said.
The institute said major economies have shown weak growth due to income inequality and aging population, resulting in conservative consumer spending and private investment.
Against such backdrop, Taiwan's economic growth is feeble at best, it said.
The institute forecasted private consumption to grow 1.91 percent and 1.72 percent, respectively, in 2016 and 2017, while private investment will increase 1.8 percent and 1.91 percent.
The report singled out a range of uncertainties facing the island's economy including new U.S. President's trade policy, future development of protectionism, fiscal stimulus by major economies and cross-Strait relations.
Taiwan's economy plunged into three consecutive contractions before growing 1.13 percent and 2.03 percent in the second and third quarter this year.
