TAIPEI (Taiwan News) — Taiwan's composite index of economic indicators flashed red in March for the second consecutive month, suggesting a boom amid signs that the world is on track for a recovery from the coronavirus pandemic.
After the first such red light in 10 years in February, data released by the National Development Council on Tuesday (April 27) showed the country's index of monitoring indicators, which reflects economic performance, remained steady at 40 points. February's figure was the highest since April 1989.
The NDC uses a five-color system to represent the country's economic situation, with blue signaling contraction, green indicating stable growth, and red suggesting a boom. The dual colors yellow-blue and yellow-red refer to a transition.
Seven of the nine factors listed on the composite index flashed red in March. The only two exceptions were customs-clear exports, which flashed yellow-red, and non-farm payrolls, which continued to be blue.
Wu Ming-hui (吳明蕙), head of the NDC's Department of Economic Development, said she expected the monitor to remain red in the second quarter, though there is still room for Taiwan's exports to move upward. She noted that the strong economic performance has been supported by exports and domestic demand.
Looking ahead, Wu said Taiwan's economy will likely stay strong until at least June. However, she urged investors to remain cautious about uncertainties created by the ongoing pandemic and international trade tensions.
Composite index of economic indicators flash red for second consecutive month. (CNA photo)