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Taiwan's Economic Monitor Flashes 9th Green in October

2014/12/04 | By Judy Li

Taiwan's economic monitor flashed the ninth consecutive green in October despite the annualized 6-month rate of change in the leading composite index edging down 0.18% from a month earlier for the eighth consecutive monthly drop, according to National Development Council (NDC).

NDC uses a five-color system to gauge monthly economic performance: Blue means a recession, yellow-blue implies a slowdown, and green means stable economy, yellow-red shows a warming economy, and red suggests overheating.

The composite scores of the index stood at 29 points in August, but dropped to 27 in September and  24 in October, the lowest in five months, an official at NDC points out.

Among the nine components that constitute the composite indicator, the annual growth of exports declined to 4% from 5.8% of a year earlier, with the light turning yellow-blue from green, and the stock price becoming green from yellow-red.

In October the coincident index, which assesses economic climate in a given month, again trended up for the 15th straight monthly rise.

Many observers believe the continuing drop of oil prices globally, resulting in lower gasoline prices, will stimulate purchasing power in the United States, Europe and Japan that may boost global economic growth next year by 0.2-0.4 of a percentage point, to be instrumental to Taiwan's external trade. (JL)