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Outlook for petrochemical, basic metal sectors poor: MOEA

Outlook for petrochemical, basic metal sectors poor: MOEA

Taipei, Dec. 31 (CNA) The outlook for Taiwan's petrochemical and basic metal sectors next year will be dimmer than for other sectors, a Ministry of Economic Affairs (MOEA) official said Saturday. Most manufacturers said in a recent survey that they would hit bottom in the first quarter of 2012, but the petrochemical and basic metal sectors could continue to struggle into the second half of the year, the official said. Part of the problem, he said, is that 30 to 40 percent of Taiwan's petrochemical and base metal exports normally go to China, to customers such as plastic processing plants, auto parts manufacturers, and steel plate producers that are export-oriented. With their operations suffering from China's credit tightening policy and the eurozone debt crisis, "this has also affected Taiwan's petrochemical and basic metal sectors," the official said. The official said the world economy began to grow sluggish in August due to the European and American debt crises and may suffer for a more prolonged period than it did after the 2008 financial meltdown. At that time, every country resorted to stimulus measures to save their floundering economies, helping turn the situation around, but major economies, including China, have not come up with similarly aggressive measures this time around, he said. The official said that although China has pulled back on its credit tightening measures for the time being to cope with the current economic slump, it has not eased it monetary policy mainly because of inflation fears. (By Lin Shu-yuan and Lilian Wu)


Updated : 2021-04-23 06:34 GMT+08:00