Taiwan’s economy continued to show signs of steady growth in October, with monitoring indicators flashing a green light for the fourth consecutive month, according to a report released Monday by the National Development Council (NDC).
Meanwhile, the trend-adjusted leading index and the trend-adjusted coincident index both showed increases for the eighth consecutive month, signaling that the economy continued to improve during the month, according to the NDC.
The NDC uses a five-color system to gauge the country’s economic situation, with blue indicating recession, yellow-blue representing sluggishness, green denoting stable growth, yellow-red signifying a warming economy, and red pointing to overheating.
The economy flashes the different colors based on the council’s composite monitoring indicator, which measures growth or decline in nine components of the economy.
Of the nine components, the signals for four of them remained green, including the M1B money supply, the stock market, the industrial production index, and the Taiwan Institute of Economic Research (TIER) manufacturing composite indicator.
A monitoring indicator score of between nine and 16 represents a blue light, while 17-22 indicates yellow-blue, 23-31 signals green, 32-37 represents yellow-red, and 38-45 signals red.
Overall, the monitoring indicator increased by one point from a month earlier to 24 in October, due mainly to an increase of one point, respectively, in customs-cleared exports and the sub-index of manufacturers’ shipments, both of which flashed a yellow-blue light, and a decrease of one point in imports of machinery and electrical equipment, which flashed red in October.
In addition, the trend-adjusted leading index was 100.82 in October, up 0.21 percent from the previous month, while the trend-adjusted coincident index increased by 1.09 percent to 104.05.
The recovery was also due to an uptick in exports of electronic components, driven by the booming semiconductor sector, said Wu Ming-hui (吳明蕙), head of the NDC’s department of economic development.
She was also upbeat about the future, saying that Taiwan’s export momentum will continue to pick up, with increased sales during the Christmas holiday season and the Chinese Lunar New Year holiday, coupled with current stable prices for some raw materials.
Meanwhile, increasing investment in advanced semiconductor manufacturing processes, the government’s public infrastructure projects and innovative industries are also expected to help boost exports, Wu added.
Source: Focus Taiwan News Channel