Nearly half of respondents pointed to new waves of COVID-19 outbreaks as the biggest risk for Taiwan’s economy next year, a survey released on Monday by Cathay Financial Holding Co (國泰金控) showed.
The survey, which was conducted earlier this month among 18,666 respondents, found that 48.5 percent expected new waves of COVID-19 infections next year to hit the nation’s GDP growth.
According to the poll, 28.4 percent were concerned that escalating US-China trade tensions would affect Taiwan’s economy and 9.4 percent were worried that the reshaping of global supply chains would undercut companies’ profits.
The survey found that 34.3 percent of respondents expected global monetary and fiscal policies to have the biggest effect on Taiwan’s equity market next year, followed by the US stock market at 23.8 percent and stability in cross-strait relations with 20.3 percent, the survey showed.
About 35 percent of respondents expect the TAIEX to fall over the next six months, while 31.2 percent forecast the index to continue its rally, the survey found.
The results compared with 36.1 percent and 33.6 percent respectively who felt so a month earlier, Cathay Financial said.
Regarding the outlook of the job market, 44 percent of respondents said they expect the employment situation to worsen and 16.9 expected a raise in their salary over the next six months, compared with 47 percent and 15.8 percent respectively who felt so a month earlier, the survey showed.
As most consumers used their Triple Stimulus Vouchers in July or last month, consumers’ willingness to make big-ticket purchases or buy durable goods has weakened from one month earlier, Cathay Financial said.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
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