From the looks of the chart below, don’t talk of decoupling in Taiwan. In a country where almost 50% of GDP comes from exports, the world wide recession is having a devastating effect. With exports down 40% from last year, Taiwan is suffering a 20% drop in GDP if last month’s losses are annualized.
Compare this with an expected GDP drop in Germany or America of from 1-2% and you see how the losses in their major markets translate in a multiplier effect of around 10 times in Taiwan. They are not decoupled with America and Western Europe. They depend on demand from these regions to fuel their internal employment and growth.
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