Taiwan’s economy is in stable growth mode, but index falls to two-year low

TAIPEI, Sept. 27 (CNA) Taiwan’s economy remained stable in August, but an index measuring economic conditions plunged to its lowest level in more than two years, largely due to weaker global demand, the report said. The National Development Council (NDC) said on Tuesday.

Leading indicators assessing economic conditions over the next six months also fell in August, signaling a cautious economic outlook, according to Taiwan’s top economic planning agency, the NDC.

According to NDC data, the composite index of watchdog indicators that reflect current economic conditions fell to 23 in August, down one point from the previous month, flashing a “green light” for the sixth month in a row.

The index plunged to its lowest level since July 2020 in August, remaining at the bottom end of the 23-31 point green light category.

NDC uses a five-color system to measure a country’s economic performance. Blue indicates a contracting economy, yellow-blue represents a slump, green represents steady growth, yellow-red represents a warming economy, and red represents an overheating or booming economy. .

Chiu Chiu-ying, deputy director of the NDC’s Economic Development Department, said Taiwan’s outbound sales were weakening global demand amid rising inflation and aggressive interest rate hikes by the world’s major central banks. said to be affected by

According to the NDC, among the nine factors in the composite index, the sub-index of goods exports from Taiwan fell by one point from the previous month in August, retreating from a red light in July and flashing yellow-red.

The retailers, wholesalers and food/beverage sector sales sub-index also fell one point, according to the NDC, with yellow-red lights flashing after July’s red indicator, and the wholesale sector was also affected. added. This is due to weak global demand.

Reversing the recession, the stocks sub-index flashed a yellow-blue light in August after flashing blue in July, rising one point from the previous month to flash a yellow-blue light in August, signaling weakness across the index, according to the NDC. offset.

Other factor sub-indices, including money supply, industrial production, non-farm payrolls and manufacturing confidence, were all unchanged in August, according to the data.

However, the leading indicator was down 0.94% month-on-month, marking the 10th straight month of decline, NDC said.

The index’s cumulative decline over the 10 months was 7.05%, but the monthly decline in August was slower than June and July’s declines of 1.11% and 1.03%, respectively, Chiu said. I’m here.

Of the seven leading indicators, only the sub-indicators of employment and semiconductor equipment imports rose in August, according to NDC data.

Chiu did not provide a forecast for September’s performance of the Composite Index, saying only that the domestic economy is facing challenges stemming from rising inflation and interest rate hikes amid the Russia-Ukraine war.

But the silver lining is that Taiwan is expected to benefit from the development of emerging technologies such as automotive electronics and high-performance computing devices, which will help soften the impact of weak global demand. would be useful for Taiwan’s economy is in stable growth mode, but index falls to two-year low

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