Analysis by Region - Asia Pacific - Taiwan
Description
The ongoing Middle East conflict, which has triggered significant volatility in energy prices, has prompted us to raise our 2026 inflation forecast for Taiwan by 0.4ppts to 2.1% y/y to reflect the external energy price shock. We've also slightly lowered our 2026 GDP growth forecast to 6.57% y/y from 6.62%, factoring in a modest and likely temporary drag on consumption.
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