Taiwan's Economic Performance in Q1 Likely to Dip to New Low: WES

The world's economic climate index climbed to 103.2 in the first quarter, a new quarterly high since Q3, 2011, according to the World Economic Survey (WES) recently released by Munich-based Ifo Institute for Economic Research, German's leading economic think tank.

WES indicates that Taiwan's economic performance in the first quarter of this year will be the worst of its kind since the first quarter of 2013 as its capital spending, overall economic performance and private consumption all dropped to low levels in the survey with scores of 4 points, 2.5 points and 2 points, respectively, based on a range of 1 to 9 points.

Since 1981 the Ifo has conducted a quarterly survey in numerous countries on business cycle developments and other economic factors. The survey for Q1, 2014 received responses from 1,121 economic experts in 121 countries. Of which, eight responses from Taiwan out of 14 questionnaires were tallied.

Taiwan's respondents believe that the U.S. QE tapering may influence Taiwan's exports and overall economic performance this year, which will impact rise in wages and salaries of employees on the island and discourage private spending.

The survey shows that the global economic climate index will post a second consecutive quarterly rise to reach 103.2 in the first quarter, particularly in North America and West Europe, while the index in Asia will decline to 97.4 from 98.2 of a quarter earlier. (JL)