TAIPEI (Taiwan News) — Academia Sinica revised its gross domestic product (GDP) forecast for Taiwan this year down to 3.52% from 3.85% on Monday (July 18).

Even though Taiwan’s imports and exports have remained strong, the forecast was lowered due to increased pressure on the domestic economy for the latter half of the year due to the changing political and economic situation at home and abroad, according to Academia Sinica research fellow Ray Chou (周雨田).

In response to continued inflation worries, the institute also revised its consumer price index forecast upward this year from 2.04% up to 3.16%, according to CNA. Meanwhile, the wholesale price index forecast, which measures the changes in commodity prices, was also increased from 4.04% to 11.31% because of rising raw material and electricity prices.

The research institute also noted the unemployment rate for the first five months of the year was 3.65%, while forecasting a rate of 3.71% for the whole year. Academia Sinica said the employment prospects for restaurants, hotels, wholesale and retail sectors, and other service industries remain uncertain due to the ongoing pandemic.