Despite the National Development Council's (NDC) composite index of economic indicators for Taiwan dropping two points between December and January, a solid stock market and strong investments kept overall growth stable, according to data released Tuesday.
The index fell from 38 to 36 between December 2021 and January this year, sitting in the "yellow-red" range of 32-37 on the council's five-color rating system, with "blue" indicating economic contraction, "yellow-blue" sluggishness, "green" stable growth, "yellow-red" a warming economy, and "red" an overheating or booming economy.
Wu Ming-hui (???), head of the NDC's Department of Economic Development, attributed the overall fall to a high basis of comparison with December's adjusted score.
Prior to December, the index had sat in the "red" range for 10 consecutive months.
Meanwhile, although the index's lead indicator gauging the economic climate over the next six months moved down slightly by 0.06 percent to 102.8 between December and January, the coincident index increased by 0.32 percent to 103.16, signaling a stable local economy, the NDC said.
Looking ahead, Taiwan is expected to maintain its export and investment growth momentum, but the NDC, the country's top economic planning agency, cautioned that attention should be paid to sources of uncertainty, such as geopolitical instability, the global COVID-19 situation, global supply chain challenges, and the fiscal policies of major economies.
Source: Focus Taiwan News Channel