Taipei, Sept. 27 (CNA) The local economy contracted for the 10th consecutive month in August as the „blue light” on the index measuring economic fundamentals continued to glow, the National Development Council (NTC) said on Wednesday.
Despite another blue light in August, the country’s top economic planner, the NDC, said Taiwan’s economy could emerge from contraction in the fourth quarter, with the country’s exports expected to pick up on the back of booming business from emerging technologies. As artificial intelligence develops.
Data compiled by the NDC showed that the Composite Index of Economic Indicators remained in the „blue light” category, from nine to 16, unchanged from 15 points in August a month earlier.
A leading gauge of the economic outlook over the next three to six months fell 0.30 percent to 99.06 in August, while a contingent gauge of current economic conditions pared the decline, rising 0.91 percent to 97.48.
The NDC uses a five-color system to measure a country’s economic performance, with blue indicating economic contraction, yellow-blue indicating recession, green indicating stable growth, yellow-red indicating a warming economy and red indicating an overheated or growing economy. .
Among the nine factors in the August composite index, the money supply sub-index fell by one point from a month ago, compared with a yellow-blue glow in July. A dot rose to flash a yellow blue light, an upgrade from blue light in July, the NDC said.
The other seven factors — production, non-farm payrolls, stock price changes, machinery and electrical equipment imports, sales posted by the manufacturing sector, earnings from retail, wholesale and food/beverage industries and business sentiment among producers — remained unchanged, the NDC added. .
Speaking to reporters, Chiu Chiu-ying (邱秋瑩), deputy director of the NDC’s Economic Development Department, said the recovery in contingent indicators indicated some improvement in the local economy.
Most of the sub-indices related to incidental indicators, including industrial production, electricity consumption, the manufacturing sector and sales generated by wholesale and retail trade, employment and goods exports, were higher than in August, Chiu said. Generally signals positive trends for the economy.
However, he said the NDC will closely monitor how the economy develops in the next few months as leading indicators continue to fall.
Chiu said he was not pessimistic about the local economy despite August’s 10th straight blue light.
Chiu said the local economy could be worse as domestic demand remains solid and there are signs that exports have started to pick up, but acknowledged that the pace of export growth is slowing.
As the August composite index is only two points from the yellow-blue light range of 17 to 22, it will not be difficult for the index to enter the yellow-blue light range in the fourth quarter as peak seasonal effects, said Chiu. Exports of the country should be increased.
Citing a recent report by the International Monetary Fund, Chiu said global trade will grow 3.7 percent in 2024 compared to an expected 2 percent in 2023, a positive sign for Taiwan’s outbound sales.
In addition, increasing AI development and the introduction of new technological gadgets are expected to pave the way for economic growth in Taiwan in the long run, Chiu said.