2020 Taiwan’s Industrial Outlook – Food Industry

With the impact of COVID-19, the growth momentum of global economy in 2020 is declining so that the major economy forecast agencies have significantly revised the economic growth forecast downwards. According to the forecast data published by IHS Markit in May, the global economic growth is projected at - 5.5%, much worse than the - 1.7% during the 2009 financial crisis, and is the lowest since records began after World War II. Being affected by global economic downturn, a slowdown is also observed in the economic performance of Taiwan. As indicated by the World Economic Outlook published by IMF in mid-April, the economic growth rate in Taiwan was revised downwards to - 4.0%, which is currently the lowest value estimated by all forecast agencies. However, experts in different fields considered that with the successful epidemic prevention in Taiwan, the isolated or controlled economic activities shall be gradually resumed, which would help sustain the gradual economic recovery in the second half of 2020. As estimated by Directorate General of Budget, Accounting and Statistics in late May, the annual economic growth rate of Taiwan in 2020 is about 1.67%. Although it is 1.04 percentage points lower than that of 2.71% in 2019, positive growth has been maintained compared to countries with negative growth, and it is even more praiseworthy that Taiwan has come top of the Four Little Dragons for two consecutive years.