Taiwan

RGE's Q1 2010 Taiwan Outlook

Taiwan’s economic downturn bottomed out in Q1 2009 and aggressive stimulus measures helped the economy grow more than 20% on a q/q seasonally-adjusted basis in Q2. The growth rate then moderated, but capital inflows boosted private consumption in Q3. These inflows, however, as in much of Asia, raise the risk of inflating asset bubbles. Taiwan’s central bank thus might tighten capital account restrictions. Taiwan’s consumption is expected to continue to benefit from capital inflows in 2009, and investment should also rebound on improving global demand, low borrowing costs and base effects. Yet Taiwan’s recovery will be highly...

Read the Q1 2010 Taiwan Outlook.