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Taiwan's economy has not yet bottomed out: report

Taiwan's economy has not yet bottomed out: report

Taipei, June 28 (CNA) A recent report indicated that the outlook for Taiwan's manufacturing sector is at its worst since the financial crisis in 2008, but an official said Thursday the economy has not yet bottomed as the European debt crisis continues to linger. The sagging economy, affected by the European debt woes and China's slowing economy, is a "chronic illness," said Gordon Sun, director of the macroeconomic forecasting center at Taiwan Institute of Economic Research (TIER). He said Taiwan's economy has not yet reached the lowest point for the year and is unlikely to rebound anytime soon. The TIER index of Business Climate in May was 90.81 points, a drop of 5.64 points from 96.45 in April and the largest monthly decline since November 2008. The index is used by the institute to help gauge the economic outlook for the next six months. TIER conducts a survey every month in the manufacturing sector and uses the data to compile the index. The report showed that not just the manufacturing sector, but industries in general held a pessimistic view of the economic outlook. In May, 21.7 percent of the companies polled were optimistic about the outlook for the second half of the year, compared with 26 percent in April. Meanwhile, 35.1 percent projected a downturn, a sharp increase from 20.9 percent the previous month. The institute said the trend was the result of lackluster consumer confidence due to the slowing economy. The European market continues to fluctuate as the financial turmoil has spread from Greece to Spain, the institute said. In addition, the sluggish recovery of the U.S. economy and the slowdown in China and India will continue to affect Taiwan's economy, the institute said. (By Wu Ching-chun and Nell Shen)


Updated : 2020-12-02 02:40 GMT+08:00