...Ratings Affirmed: The ratings affirmation reflects Taiwan's robust external finances, strong macroeconomic policy framework, and competitive business environment. The ratings are constrained by Taiwan's low per capita income levels relative to `AA' peers and complex relations with mainland China that raise the potential for economic and political shocks. Growth Set to Decelerate: Taiwan's 1H19 GDP growth performed better than Fitch Ratings' prior expectations, despite the ongoing deceleration in global economic activity. However, Fitch believes Taiwan will not remain immune to negative economic spillovers from US-China trade frictions, given its status as a small, open economy, and strong supply-chain linkages to both the US and mainland China. The agency forecasts real GDP growth will decelerate to 2.0% in 2020, from 2.2% in 2019, with risks tilted to the downside. Robust External Finances: External finances are among the strongest across Fitch-rated sovereigns, and this is unlikely to...
