Moody's Investors Service says in a new......>

TAIWAN: Moody's Investors Service says in a new report that the credit profile

of Taiwan (Aa3 stable) is underpinned by its high income and wealth levels, and

strong institutional framework and fiscal and external positions, against a

narrowly diversified economy that is subject to persistent geopolitical

tensions. "We project economic growth to slow sharply to 0.2% in 2020 amid the

global coronavirus outbreak, given the role of Taiwan's export-oriented

manufacturing sector in global supply chains. Nevertheless, we expect Taiwan's

economy to recover swiftly with growth around 3.7% in 2021, aided by continued

reshoring of investment by Taiwanese overseas companies and a resumption in

demand for Taiwan's high-quality electronics exports," says Michael Higgins, a

Moody's Analyst. Beyond immediate obstacles, Taiwan's high degree of trade

openness, linkages to the global electronics supply chain and strong trade ties

with China (A1 stable) have left it vulnerable to the outcome of trade tensions

between the latter and the US (Aaa stable), which are likely to worsen amid the

global coronavirus outbreak.

- Link: http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1230990