Latest news with #TaiwanEconomy
Zawya
2 days ago
- Business
- Zawya
Taiwan central bank will take 'timely' steps to ensure financial stability
Taiwan's central bank will take "timely" measures to ensure financial stability in the face of uncertainty over U.S. tariffs, geopolitical conflict, climate change and market volatility, it said on Thursday. In its annual financial stability report, the central bank said the uncertainty could adversely affect global economic development and pose risks to Taiwan's own financial stability. Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, with U.S. tariffs, if implemented, likely to weigh on growth. "The bank will pay close attention to the possible impact of the relevant developments on the overall economy and the financial system, and will take timely measures to promote domestic financial stability," the central bank said, without elaborating. While the foreign exchange market has become more volatile, it has remained relatively stable over the long-term, and the bond market has not experienced any significant fluctuations, it said. But if U.S. tariffs affect the ability of households and the corporate sector to service their debt, then that could have a detrimental effect on financial institutions' profitability and capital adequacy. A semiconductor powerhouse that runs a large trade surplus with the U.S., Taiwan was facing duties of 32% on its U.S. imports until U.S. President Donald Trump paused tariffs for 90 days to allow negotiations to take place. Earlier this month, the central bank asked banks to follow foreign exchange settlement rules, following a surge in the Taiwan dollar in recent weeks on speculation that Washington has asked Taipei to allow it to strengthen as part of tariff talks. Taiwan's central bank has denied the U.S. made such a request. In Thursday's report, the central bank also said that life insurance companies with large domestic and foreign investment portfolios are exposed to higher market risks from volatility on global financial markets. (Reporting by Ben Blanchard and Liang-sa Loh; Editing by Rachna Uppal)
CNA
2 days ago
- Business
- CNA
Taiwan central bank will take 'timely' steps to ensure financial stability
TAIPEI :Taiwan's central bank will take "timely" measures to ensure financial stability in the face of uncertainty over U.S. tariffs, geopolitical conflict, climate change and market volatility, it said on Thursday. In its annual financial stability report, the central bank said the uncertainty could adversely affect global economic development and pose risks to Taiwan's own financial stability. Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, with U.S. tariffs, if implemented, likely to weigh on growth. "The bank will pay close attention to the possible impact of the relevant developments on the overall economy and the financial system, and will take timely measures to promote domestic financial stability," the central bank said, without elaborating. While the foreign exchange market has become more volatile, it has remained relatively stable over the long-term, and the bond market has not experienced any significant fluctuations, it said. But if U.S. tariffs affect the ability of households and the corporate sector to service their debt, then that could have a detrimental effect on financial institutions' profitability and capital adequacy. A semiconductor powerhouse that runs a large trade surplus with the U.S., Taiwan was facing duties of 32 per cent on its U.S. imports until U.S. President Donald Trump paused tariffs for 90 days to allow negotiations to take place. Earlier this month, the central bank asked banks to follow foreign exchange settlement rules, following a surge in the Taiwan dollar in recent weeks on speculation that Washington has asked Taipei to allow it to strengthen as part of tariff talks. Taiwan's central bank has denied the U.S. made such a request. In Thursday's report, the central bank also said that life insurance companies with large domestic and foreign investment portfolios are exposed to higher market risks from volatility on global financial markets.
Reuters
2 days ago
- Business
- Reuters
Taiwan central bank will take 'timely' steps to ensure financial stability
TAIPEI, May 29 (Reuters) - Taiwan's central bank will take "timely" measures to ensure financial stability in the face of uncertainty over U.S. tariffs, geopolitical conflict, climate change and market volatility, it said on Thursday. In its annual financial stability report, the central bank said the uncertainty could adversely affect global economic development and pose risks to Taiwan's own financial stability. Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, with U.S. tariffs, if implemented, likely to weigh on growth. "The bank will pay close attention to the possible impact of the relevant developments on the overall economy and the financial system, and will take timely measures to promote domestic financial stability," the central bank said, without elaborating. While the foreign exchange market has become more volatile, it has remained relatively stable over the long-term, and the bond market has not experienced any significant fluctuations, it said. But if U.S. tariffs affect the ability of households and the corporate sector to service their debt, then that could have a detrimental effect on financial institutions' profitability and capital adequacy. A semiconductor powerhouse that runs a large trade surplus with the U.S., Taiwan was facing duties of 32% on its U.S. imports until U.S. President Donald Trump paused tariffs for 90 days to allow negotiations to take place. Earlier this month, the central bank asked banks to follow foreign exchange settlement rules, following a surge in the Taiwan dollar in recent weeks on speculation that Washington has asked Taipei to allow it to strengthen as part of tariff talks. Taiwan's central bank has denied the U.S. made such a request. In Thursday's report, the central bank also said that life insurance companies with large domestic and foreign investment portfolios are exposed to higher market risks from volatility on global financial markets.
CNA
3 days ago
- Business
- CNA
Taiwan trims 2025 GDP growth forecast, cites US tariffs uncertainty
TAIPEI :Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, weighed down by uncertainty over possible U.S. tariffs. Taiwan is a key hub in the global technology supply chain for companies such as Apple and Nvidia, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC). Taiwan's gross domestic product for this year is now expected to be 3.1 per cent higher than last year, the agency said, revising downward the 3.14 per cent forecast it issued in February. That would also be lower than the 4.59 per cent growth rate for 2024. Exports this year are expected to grow 8.99 per cent, the agency said, upgrading a previous forecast of 7.08 per cent. For the first quarter of this year, GDP expanded by 5.48 per cent, the agency said, compared with a preliminary reading of 5.37 per cent. The first quarter's performance marked the fastest rate since the first quarter of 2024 when the economy expanded 6.64 per cent.
Reuters
3 days ago
- Business
- Reuters
Taiwan trims 2025 GDP growth forecast, cites U.S. tariffs uncertainty
TAIPEI, May 28 (Reuters) - Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, weighed down by uncertainty over possible U.S. tariffs. Taiwan is a key hub in the global technology supply chain for companies such as Apple (AAPL.O), opens new tab and Nvidia (NVDA.O), opens new tab, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) ( opens new tab, . Taiwan's gross domestic product for this year is now expected to be 3.1% higher than last year, the agency said, revising downward the 3.14% forecast it issued in February. That would also be lower than the 4.59% growth rate for 2024. Exports this year are expected to grow 8.99%, the agency said, upgrading a previous forecast of 7.08%. For the first quarter of this year, GDP expanded by 5.48%, the agency said, compared with a preliminary reading of 5.37%. The first quarter's performance marked the fastest rate since the first quarter of 2024 when the economy expanded 6.64%. The statistics agency also slashed the 2025 consumer price index (CPI) forecast to 1.88% from the previous 1.94%.
