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

2014/10/06 | By Judy Li

Thanks to stable performance in finance, manufacture and trade, Taiwan's economic monitor flashed the seventh consecutive monthly green in August, with the composite scores gaining two points from a month earlier to 29 points, according to Taiwan's  National Development Council (NDC).

Taiwan adopts a five-color gauge for the island's economic performance: green means stable economic growth; red reflects the economy is overheated; yellow-red shows a heating economy; yellow-blue signals an economic slowdown; and blue indicates a recession.

Among the nine factors that constitute the economic monitoring indicator, four flashed yellow-red with industrial production index and traditional  electromechanical equipment imports turning yellow-red from green and gaining one point each.

In the same month the annualized 6-month rate of change in the leading composite index edged down 0.13% from a month earlier to 100, the sixth consecutive monthly fall. However, the coincident indicator rose a slight monthly 0.41% to 101.92.

A senior official at NDC indicates that the leading index forecasts economic outlook for the next three months and the coincident index assesses economic climate in a given month.

The official says, based on prediction by Global Insight, the world's economic growth in 2015 is expected to be 3.3%, better than this year's 2.7% to likely help  Taiwan's export. (JL)