January 23, 2009

Taiwan’s economy pegged to grow slowly

A Taiwanese research group cut its forecast for the country's economic growth for 2009 from 4.11 percent to 0.89 percent Friday.

Although prices for raw materials are in decline, falling production and fewer investments would weaken Taiwan's employment base, said Chen Miao, director of the Taiwan Institute of Economic Research.

The Directorate General of Budget, Accounting and Statistics said unemployment in Taiwan jumped to 5.03 percent in December, the China Post reported.

Chen said exports to China and other Asian countries would help prop up the economy in 2009. Exports for the year would rise 2.13 percent, he said.