TAIPEI (Taiwan News) — The National Development Council (NDC) gave Taiwan’s economy in June a “red light” score of 38 points on Monday (July 29).

According to a Monday NDC press release, a red light (38-45 points) means a growing economy, a green light (23-31 points) means a stable economy, and a blue light (9-16 points) means a sluggish economy.

NDC Department of Economic Development Director Chiu Chiu-ying (邱秋瑩) said leading economic indicators show a larger increase in the past two months, per CNA.

The Purchasing Managers’ Index (PMI) outlook continues to be positive, and the latest Consumer Confidence Index (CCI) for July has risen, all of which send positive signals, the director added.

“The overall industrial sector is now in a recovery phase,” Chiu said. The development of AI-related industries and advanced processes will contribute to positive economic performance in the second half of the year, he said.

Chiu added that there are still many variables in the international political and economic situation. The timing of the U.S. Federal Reserve’s rate cuts, the U.S. presidential election, subsequent economic policies, and other factors are uncertainties that could impact Taiwan's future economic development, he explained.