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Cathay Financial lowers Taiwan GDP outlook to 3.7%

Taiwanese conglomerate Cathay Financial has revised downwards its GDP growth forecast for Taiwan to 3.7%, from the previous 3.9%, due to the effects of the ongoing war in Ukraine. In a news conference, Cathay Financial said the Ukraine war has caused food and metal prices to rise, worsened inflation, and dampened global demand. The downward revision is the first time for Cathay Financial for this year. In December, it predicted a GDP growth of 3.9% for the entire 2022. The conglomerate also noted the correlation between the US and Taiwanese economies. A drop of 1 percentage point in US economic growth correlates to a dip of 0.5 percentage points in Taiwan’s economy, Cathay’s research showed.


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