Taiwan's economy has been slapped with another depressing growth forecast as the Taiwan Institute of Economic Research (TIER) cut their projections by 0.27 percent on Monday. This is the gloomiest forecast for 2016. 

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TIER cited unstable international financial markets, mainland China's stock market dips, low demand for most of Taiwan's export goods, and the transition from the old to the new government which endangered government investments. 

"Taiwan's weather is not the only one experiencing the cold, our economy is chilly as well. The main international forecasters are synchronized this year with their lower estimates," said Sun Mingde, director of TIER's economic forecasting center. 

All numbers down in December 

Taiwan's exports concluded an 11-month consecutive year-on-year decline in December 2015 as it fell by a staggering 13.86 percent. Its exports to China, ASEAN 6, the European Union, and the United States also decreased. Meanwhile, exports throughout January to December last year declined by 10.59 percent. 

"Taiwan's first-quarter exports are unlikely to be promising as there is low demand for energy, metals, and electronic products, which account for 60 percent of Taiwan's total exports," Sun said. 

Imports also suffered a 15.59 percent drop year-on-year, with the Consumer Price Index (CPI) posting a 0.14 percent year-on-year increase. 

"Although global crude oil price plunge would drag down the price level, hiking vegetable and fruit prices due to recent climate change and heavy precipitations offset the effect of dropping oil prices," TIER reported. 

The unemployment rate also decreased by 0.04 percent from November, which is now at 3.87 percent. 

"The annual hike in nominal salary stood at 1.64% in November; the increase in real salary stood at 0.67% on average. The bad news is the increase in real salary is still so limited."   

However, TIER estimated the economy to grow by 0.29 percent in Q1, 1.42 percent in Q2, 2.13 percent in Q3, and 2.37 percent in Q4. 

Tagstaiwan economy, Taiwan exports, Taiwan economic growth 2016 forecasts