Taiwan's Economic Monitoring Indicator Shows 5th Straight Green Light in June

Taiwan's economic monitor again flashed green in June--for the fifth month in a row--with its composite score gaining two points to 26, due mainly to improved performance in stock prices and machinery & electrical equipment imports, according to National Development Council (NDC).

Taiwan uses a five-color economic performance gauge: blue for recession, yellow-blue for slowdown, green for a stable economy, yellow-red for a warming economy, and red suggesting overheating.

In June the stock-price monitor turned from green to yellow-red and the monitor for machinery and electrical equipment imports switched from yellow-blue to green, giving the overall monitor its two-point boost.

C. L. Chen, vice minister of the NDC, notes that the monitor remaining green in June suggests a moderate economic recovery in the first half of the year. He predicts that Taiwan will continue seeing the green light in the months to come, and that the island will enjoy stable economic growth in the second half of the year.

Also in June the annualized 6-month rate of change in the leading composite index slipped 0.19% and the coincident index edged up 0.22%.

The Ministry of Economic Affairs (MOEA) has set its target for private investment in 2014 at NT$1.3 trillion (US$43.33 billion); 24.52% of the goal was accomplished in the first quarter, and about 50%, or around NT$650 billion (US$21.67 billion), in the first half.

The MOEA is cautiously optimistic about Taiwan's economy in 2014, as most forecasting organizations expect its growth for the year will be above 3%. (JL)