Alexa
  • Directory of Taiwan

Inflation and China lockdowns dampen Taiwan manufacturing mood in March

Manufacturing index dips to lowest point since November 2020

  1256
Taiwan's manufacturing sector reports a yellow-blue light for the first time in 16 months. 

Taiwan's manufacturing sector reports a yellow-blue light for the first time in 16 months.  (CNA photo)

TAIPEI (Taiwan News) — The outlook for Taiwan’s manufacturing fell to its least positive point in 16 months due to fears of inflation and COVID-19 lockdowns in China, the Taiwan Institute of Economic Research (TIER) said Friday (April 29).

The think tank awarded the situation a yellow-blue light following five consecutive months with a green light, CNA reported. Taiwan uses a five-color system to symbolize its economic performance, with blue standing for contraction, yellow-blue representing sluggishness, green indicating stable growth, yellow-red referring to a warming economy, and red pointing to an overheated or booming economy.

The last time the manufacturing sector recorded a yellow-blue light was in November 2020. TIER noted Taiwan’s continued strong export performance, but also mentioned the impact of the Russian invasion of Ukraine on the international prices for raw materials and the uncertain situation surrounding the COVID lockdowns of cities in China.

Disruption of supply chains, high inflation, and shortages of raw materials remained a possibility, casting a shadow over economic prospects for the rest of 2022, TIER economists said.