TAIPEI (Taiwan News) — The central bank on Monday (April 20) argued that the International Monetary Fund's (IMF) prediction of Taiwan's 2020 GDP growth is too "pessimistic" and said it expects a slow but steady increase in the island nation's investment momentum.

In the "World Economic Outlook" report released Tuesday (April 14), the IMF revised Taiwan's GDP outlook from 2 percent growth last October to a drop of 4 percent in 2020. It also forecast that the global economy will contract by 3 percent this year due to the economic devastation caused by the ongoing pandemic.

During a Q&A session at the Legislative Yuan Monday, the central bank's deputy governor Yen Tzung-ta (嚴宗大) refuted the IMF's forecast, pointing out that Taiwan will be able to soften the economic blow with its green energy technologies and semiconductor markets. He also noted that since the coronavirus outbreak has weakened most countries' financial systems, Taiwanese businesses will most likely have to rely on domestic trade.

Yen said the government's three investment programs aiming to invite overseas Taiwanese businesses to return home and to accelerate investment by domestic or small-and-medium enterprises, have been rather successful and could contribute to the stabilization of the country's economy. He also expressed optimism about the nation's hospitality industry and said it will be revived as soon as the pandemic is over.

Yen said this was not the first time the IMF has revised down Taiwan's GDP growth and that the central bank will continue to negotiate with the organization. Meanwhile, he urged investors to only treat the IMF forecast as a reference instead of relying fully on it, reported UDN.