The Taipei-based Chung-Hua Institution for Economic Research (CIER, 中經院) has lowered its forecast for Taiwan's gross domestic product (GDP) growth in 2016, citing prolonged weakness in the country's exports amid a slow global economic recovery.Japan, Europe, and China continue to pull down the world economy, said CIER. The Asian Development Bank also downgraded its economic forecast for Taiwan, from 1.6% to 1.1%. Private sector investments are too low, meaning that excess cash is running around the economy, pointed out another piece.
The economic think tank on Tuesday predicted growth of 0.84 percent for the year, down from a previous projection of 1.36 percent in April, and it also cut its forecast for economic growth in 2017 to 1.8 percent from 2.06 percent previously.
Speaking to the press, CNFI Chairman Hsu Sheng-hsiung (許勝雄) said that in the past 10 years, local investment only rose 17.19 percent, while the country witnessed its excess savings rate rise to 14.62 percent from 5.73 percent during the period, indicating that the local market is awash in idle money.One driver of the real estate bubble is that excess of cash in Taiwan...
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