Export-led Taiwan signals weakening global demand in new omen of recession as WTO predicts trade downturn
- Taiwan’s National Development Council said its ‘overall monitoring indicator’ for the US$760 billion economy fell by one point in August to 23
- World Trade Organization chief Ngozi Okonjo-Iweala calls prospects for trade ‘dim amid growing signs of a global economic downturn’
Export-reliant Taiwan lowered a key indicator to its lowest level in more than two years this week due to slowing consumer demand around the world, as the head of the World Trade Organization (WTO) warned of a global economic downturn.
Taiwan’s National Development Council said its “overall monitoring indicator” for the US$760 billion economy fell by one point in August to 23.
Taiwan could take a “hit” from global inflation and interest rate increases, plus economic fallout from the Russia-Ukraine war, a member of staff from the indicator department within the council, who asked not to be named as they are not authorised to speak to the media, said on Wednesday.
On Tuesday, WTO director general Ngozi Okonjo-Iweala called prospects for trade “dim amid growing signs of a global economic downturn”, pointing to “simultaneous exogenous shocks” in much of the world.
We have security shocks, we have climate shocks, we have energy shocks, we have food price shocks, all of this hitting countries at the same time
“We have security shocks, we have climate shocks, we have energy shocks, we have food price shocks, all of this hitting countries at the same time,” she told the WTO’s 2022 Public Forum.
