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Taiwan's economy in April sees 4th consecutive 'red' light

Taiwan's economy in April sees 4th consecutive 'red' light

Taipei, May 27 (CNA) Taiwan's economy flashed a "red" light in April for the fourth consecutive month, an indication that the economy was still overheated, the Cabinet-level Council for Economic Planning and Development (CEPD) said Thursday.
The CEPD adopts a five-color gauge for the country's economic performance: red indicates the economy is overheated, yellow-red signals a heating economy, green shows stable economic growth, yellow-blue indicates an economic slowdown, and blue indicates a recession.
The CEPD said that it was the first time that Taiwan's economic climate had maintained a red light for four months in a row.
However, the annualized six-month rate of change of the index slipped by 2.8 percentage points to 13.4 percent, the third consecutive monthly fall, showing a weakening momentum of economic growth, CEPD Economic Research Department Director Hung Jui-pin said in a press conference.
The CEPD attributed the continued economic boom for April to the relatively lower base for comparison last year and a better climate after the financial crisis that erupted in 2008 waned.
April's leading indicators index, which forecasts economic activity over the next three to six months, rose by 0.4 percent from March to 109.6.
In the same month, the index of coincident indicators, which measures the current pace of economic activity, climbed to 110.1 percent, a slight increase of 0.2 percent from a month earlier.
Looking ahead, the CEPD said that Taiwan is expected to see a boost in trade momentum due to a global economic recovery in spite of the debt crisis that plagued many European countries.
CEPD expressed a "generally optimistic, but prudent" view toward the country's future economic climate, based on the above- mentioned factors and expected increases both in private sector investment and domestic consumption.
(By Jsieh Chun-wei & Bear Lee)




Updated : 2021-05-09 01:46 GMT+08:00