Taiwan’s industrial output recorded its worst plunge since 2009 in January as the slowdown in global demand and the lengthy Lunar New Year holiday weighed on activity.
(Bloomberg) — Taiwan’s industrial output recorded its worst plunge since 2009 in January as the slowdown in global demand and the lengthy Lunar New Year holiday weighed on activity.
Industrial production dropped 20.5% in the month from a year earlier, data from the Ministry of Economic Affairs showed Thursday. That was far worse than a median estimate of a 11.25% decline in a Bloomberg survey of economists, and compared to December’s 8% fall.
The economics ministry attributed the decline to waning demand and global growth, along with the holiday period, which was longer than usual. Nearly 64% of manufacturers surveyed by the government expect production to remain steady in February, while almost 20% expected it to be worse than January.
The government this week cut its forecast for growth in 2023 as weak exports continue to drag on the economy. Taiwan’s Directorate General of Budget, Accounting and Statistics now sees gross domestic product likely to grow 2.12% from a year prior, down from an estimate of 2.75%.
The projection for exports worsened to a 5.84% contraction, while inflation is likely to pick up.
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