Standard &Poor’s trims growth expectation for nation to 2.1%


TAIPEI–U.S.-based international credit rating agency Standard & Poor’s (S&P) revised its forecast for Taiwan’s economic growth for 2016 to 2.1 percent, down by 0.1 percentage points from its estimate in September 2015, according to a report published Monday by Taiwan Ratings Corp., a local partner of S&P.

S&P forecast Taiwan’s economy will grow by 2.1 percent this year and 2.3 percent next year, according to the report titled “2016 Taiwan Credit Outlook: Entities Face A Rising Tide Of Challenges.”

The report looks at how weakening GDP growth in China, volatile commodity prices, and Taiwan’s weakening real estate market could further pressure rating profiles in 2016.

Taiwan Ratings said that despite a continuing U.S. economic recovery, slowing Chinese economic growth and intensified competition with other exporting countries facing Taiwan’s exporters could put greater pressure on Taiwan’s growth in 2016.