Taiwan lowers GDP outlook to 2.4% as manufacturing remains weak

From 3.59% on falling industrial production.

BBVA notes that Taiwan has lowered its GDP outlook for the year to 2.4% from previous 3.59%, "reflecting the weaker-than-expected recovery of the external environment." For its part, the research firm has a forecast of 3.5% GDP growth, which it attributed to the country facing more downside risks given the soft recovery path.

The lowered outlook came as Taiwan’s industrial production in April fell by -0.9% y/y (consensus: -0.47% y/y) from -3.0% in March. The manufacturing sector remains weak, declining by -1.2% y/y. Meanwhile, final Q1 GDP has been revised up slightly to 1.67% y/y compared to the advanced reading of +1.54%.

"The forward looking indicator (export orders in April: -1.1% y/y) still points to a soft recovery of external demand, which will continue to bring challenges to Taiwan’s export-dependent economy," said BBVA.