• Wed. Jun 7th, 2023

Taiwan’s economic system stays in contraction for sixth straight month in April


May 26, 2023

Taipei, Might 26 (CNA) Taiwan’s economic system remained in contraction mode for the sixth consecutive month in April as weakening international demand continued to weigh on the nation’s exports, the Nationwide Growth Council (NDC) stated Friday.

The NDC stated its composite index of financial indicators remained unchanged in April at 11 however stayed within the “blue” vary of 9-16 on the Cupboard-level council’s five-tier system, with blue indicating financial contraction, yellow-blue representing sluggishness, inexperienced signifying steady progress, yellow-red referring to a warming economic system, and crimson pointing to an overheated or booming economic system.

Talking with reporters, Wu Ming-hui (吳明蕙), head of the NDC’s Division of Financial Growth, stated components within the April composite index similar to manufacturing, exports, cash provide and enterprise sentiment remained weak.

Home demand appeared comparatively sturdy, with retail gross sales and income posted by the meals and beverage trade rising in a steady method, which offset the impression ensuing from a fall in outbound gross sales, Wu stated.

In April, Taiwan’s exports and export orders each fell for an eighth consecutive month, falling 13.3 % and 18.1 %, respectively, from a 12 months earlier amid stock changes in each tech and outdated economic system sectors.

Among the many 9 components within the composite index, the subindex on nonfarm payrolls rose one level from a month earlier, whereas the subindex on enterprise sentiment within the native manufacturing sector fell one level, the NDC stated.

The subindexes on different seven components similar to cash provide, merchandise exports, and industrial manufacturing remained unchanged over April, the NDC added.

Regardless of the composite index’s muted efficiency, the NDC’s main financial indicators, which gauge the financial local weather over the subsequent six months, moved increased for the sixth month in a row in April, albeit at a decreased tempo.

In April, the main indicators rose 0.13 % from a month earlier, down from March’s 0.23 % improve and the smallest month-to-month improve for six months, the NDC’s information indicated.

Within the six-month interval, the main indicators rose 2.26 %, in line with the NDC.

Wu stated the slower progress within the April main indicators confirmed that native financial progress momentum remained inadequate to have a comeback as a fall in international demand continued to harm Taiwan’s exports, which function the spine of the nation’s economic system.

Wu stated it was exhausting to foretell when the native economic system would enter the yellow-blue vary on the NDC’s grading system, as a fragile world continued to push down demand.

Solely when exports bounce again, manufacturing and gross sales of native corporations will get a lift, accordingly, Wu stated.

As well as, the marketplace for client electronics devices similar to telephones and pocket book computer systems stayed fragile, a major departure from sturdy gross sales boosted by wants created by make money working from home and distant studying within the COVID-19 pandemic period, Wu stated, including it wants a while to digest inventories earlier than manufacturing picks up.

“The native economic system’s consolidation continues and there’s no speedy signal of a turnaround,” Wu stated. “However, Taiwan might have a greater second half than the primary on the again of a comparatively low comparability base over the identical interval of final 12 months.”

The NDC stated whereas the worldwide financial slowdown will preserve affecting Taiwan’s exports, demand for rising applied sciences similar to high-performance computing gadgets, information facilities, and synthetic intelligence is anticipated to assist the nation’s outbound gross sales.

The NDC added the federal government’s efforts to push for inexperienced vitality improvement and public work initiatives are anticipated to supply help to the native economic system.

(By Hsieh Fang-wu and Frances Huang)


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