Key View 

• The Central Bank of the Republic of China (Taiwan) (CBC)'s decision to hike the policy discount rate by 12.5 basis points to 2.00% on March 21 came as a surprise to both us and the consensus. 
• While the CBC seeks to maintain price stability, we believe it will ensure that tight monetary conditions does not come at the expense of economic

Key View

• Following the December 2021 referendum results, favourable progress on the Datan Liquified Natural Gas Terminal in Taiwan, China informs our view that gas power sector expansion will carry on as per the government's plans.
• The Taiwan government's nuclear power phase-out strategy remains contested on the topic of energy security

Key View

• We at Fitch Solutions have revised our expectations for the Central Bank of the Republic of China (CBC, Taiwan) to hike its benchmark discount rate by 25bps in 2022 to 1.375% to curb risks of macroeconomic imbalances, compared to our previous forecast for them to keep rates unchanged at 1.125%.
• The CBC’s recent shift to a slightly

Key View

• We at Fitch Solutions retain our expectations for real GDP growth to come in at 6.0% for 2021, before slowing to 2.7% in 2022. Latest high frequency indicators show a moderation in external trade due to supply constraints, while domestic demand growth remains robust.
• We expect exports growth to moderate in the coming months following

Key View

• Taiwan’s power market will experience wind and solar power growth in the coming decade, with favourable referendum results for a nuclear phase-out and a liquified natural gas (LNG) terminal relocation to pose a further upside risk.
• In spite of the results of the upcoming 2021 referendum to relocate an LNG terminal, we expect power

Key View

• We at Fitch Solutions have revised up our 2021 real GDP growth forecast to 6.0% from 5.3% previously, following the release of data showing that the economy accelerated in Q321, with q-o-q growth picking up to 0.6% from -1.1% in Q221.
• A stronger outlook for exports and investment, given the robust demand for semiconductors will

Key View

• We at Fitch Solutions have revised up our forecast for Taiwan’s current account surplus to 15.0% of GDP in 2021, from 13.0% previously, amid strong growth in semiconductor exports.
• We expect strong imports growth to cap gains in the trade surplus, due to elevated domestic demand and rising commodity prices.
• However, a slowdown in

Key View

• We at Fitch Solutions have revised down Taiwan’s real GDP growth amid Covid-19 lockdowns, only slightly from 5.5% to 5.3%.
• According to advanced estimates of Taiwan’s real GDP growth in Q2 2021, the market continued to post strong growth of 7.5% y-o-y, which was only slightly slower than an upwardly revised 8.9% in Q121.
• We believe

Key View

• We forecast real household spending in Taiwan to recover over 2021, growing by a projected 2.4% y-o-y. We do note that the economic impact of the Covid-19 pandemic did create a significantly low base from which to grow. We estimate that household spending contracted by 1.3% over 2020.
• As a result, we believe that a full recovery of