Taiwan cuts growth forecast amid Wuhan virus outbreak

The DGBAS said it expects Taiwan's GDP to grow 2.37 percent in 2020, a downgrade from its earlier forecast of 2.72 percent made in November. (CNA)
The DGBAS said it expects Taiwan's GDP to grow 2.37 percent in 2020, a downgrade from its earlier forecast of 2.72 percent made in November. (CNA)

TAIPEI (CNA) — Taiwan’s government has downgraded its forecast for gross domestic product (GDP) growth in 2020 after taking into consideration the possible impact of a virus epidemic that originated in Wuhan, China, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Wednesday.

The DGBAS said it expects Taiwan’s GDP to grow 2.37 percent in 2020, a downgrade from its earlier forecast of 2.72 percent made in November, noting that the spread of the novel coronavirus since the end of last year has introduced an element of uncertainty to both the domestic and international economy.

The DGBAS added that following the lockdown imposed to prevent the spread of the virus in several major cities in China, the second largest economy in the world, production is expected to drop in its manufacturing sector.

Other countries have also introduced measures to combat the virus, which are expected to affect production and consumption, increasing global uncertainty,the DGBAS said.