A local think tank lowered its growth forecast for Taiwan's economy this year to 1.27 percent, from its January estimate of 1.57 percent, due to foreign trade contraction and the sluggish global economy.
Taiwan's exports and imports of goods in the first quarter fell by 12.1 percent and 14 percent year-on-year, according to a report by the Taiwan Institute of Economic Research released Monday.
According to the institute, the island's exports and imports of goods and services are expected to grow by 0.76 percent and 1.52 percent this year, compared with its January estimates of 2.02 percent and 2.62 percent.
Taiwan's private consumption and investment in 2016 are forecast to grow by 2.06 percent and 2.33 percent, down from its previous estimates of 2.42 percent and 2.98 percent.
Taiwan's economy experienced contraction in the final two quarters of last year, posting annual growth of 0.75 percent.
The institute forecast that the local economy will have contracted by 0.88 percent in the first quarter this year, but expanded by 1.02 percent in the second, and 2.25 percent and 2.57 percent in the third and fourth.
