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Another Downward Revision Of Taiwan Growth Forecasts Over the past three months we have once more cut back our growth forecasts for Taiwan. We now expect GDP growth of 2.1% this year (down from 3.0% previously) and 3.0% in 2014 (down from 4.0%). There are two main reasons for the more conservative outlook. First, despite a promising recovery in foreign trade in June, BMI believes Taiwan remain very exposed to the economy of mainland China, which continues to show progressive weakness. We are also concerned that China's 12th Five Year Plan suggests much tougher competition for Taiwan's semiconductor and flat-panel manufacturing sectors. While the ASEAN region may provide further support to trade in the quarters ahead, China's weakness and the adverse effects on Taiwan are likely to win out. S ...
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