Taiwan's Economic Monitor Flashes 6th Straight Green in July

Due to moderate performances in finance, external trade, and industrial production, Taiwan's economic monitor flashed its sixth consecutive monthly green light in July while its composite score was up one point to 27 points, according to the National Development Council (NDC).

The NDC attributes the rise in the composite score to robust exports, which showed an annual growth of 7.8% in July based on the NT dollar or 5.8% based in U.S. dollar terms. Exports of electronic products, minerals, chemical items, and transportation equipment all posted double-digit growth that month.

In July the coincident index, used to assess the economic climate in a given month, grew by 0.27%--its 15th consecutive monthly rise--while the leading index, used to forecast the economic outlook for the next three months, edged down 0.12%, its fifth consecutive monthly fall.

A senior NDC official indicates that most domestic and foreign forecasting organizations are optimistic about Taiwan's economic climate in the second half of the year, believing that the island's exports will keep ballooning because of continuing economic recovery in the United States and China.

Also, Taiwan's stock market has been quite active in recent months and the jobless rate has remained stable at around 4%. These factors, too, will contribute to the steady warming of the island's economy. (JL)