TAIPEI (Taiwan News) — The indicators for the condition of Taiwan’s manufacturing sector flashed a yellow-red light for the first time in more than 10 years, the Taiwan Institute of Economic Research (TIER) said Friday (March 5).

The country uses five colors to denote the state of the sectors of its economy, ranging from red for "overheating" to blue for a recession. Yellow-red indicates the economy is heating up.

While Friday’s TIER assessment only applies to the manufacturing sector, the start of coronavirus vaccination campaigns worldwide and the resulting uptick in economic activity have contributed to the improving outlook, CNA reported.

According to the think tank, the yellow-red light for January was the country's first since September 2010. Domestic factors include purchases made ahead of the Lunar New Year break and the greater number of people working and studying from home, which has benefited the electronics sector, TIER said.

The development of 5G, AI, and semiconductor technologies will help Taiwan continue its economic growth spell, according to experts. While the coronavirus pandemic and the trade war between the United States and China still give cause for concern, TIER said optimism about the country’s economy is justified.

Last month, the government revised its projection for Taiwan’s economic growth this year from 3.83 percent to 4.64 percent.