Taiwan on cusp of a tech cycle revival, trade war tailwinds: ANZ
TAIPEI -- Taiwan's GDP growth will remain robust in 2020 at 2.1%), while inflation will remain low at 0.6%), according to research by ANZ Bank, which believes Taiwan's Central Bank of China will hold monetary policy rate unchanged at 1.375% through the year.
"A revival of the semiconductor industry will benefit the export outlook and aid the domestic corporate sector," ANZ says. "Global semiconductor sales are set to register growth of 5.9% in 2020, while tech giants such as TSMC have augmented their 2020 capex guidance.
"Business- friendly Government policy schemes will enable Taiwan to benefit from supply chain realignments."
ANZ says consumer sentiment and domestic demand will stay supported. "We will watch cross-strait relations and the impact on the tourism outlook.
"Capital flows and currency have been resilient on the improved outlook. We forecast the USD/TWD to end 2020 at 30.0."