TAIPEI (Taiwan News) — The National Development Council (NDC) gave Taiwan an overall 35 “yellow-red” score for July, down from 38 points in June.

According to an NDC report published Tuesday (Aug. 27), a “yellow-red” score indicates a warming or transitional economy while a “red” score means a booming economy.

The council said while demand for information and communication products remains strong, the recovery in traditional industries has been slower, per CNA. Additionally, Typhoon Gaemi affected some production and delayed shipments, resulting in a green light for exports and a yellow-red light for the industrial production index.

The council explained the domestic job market remains stable and the economic recovery may encourage companies to increase wages. Government initiatives to reduce the financial burden on citizens will help sustain consumer momentum, it added.

Looking ahead, the council said with the growth of global trade and continued excitement around AI, export momentum is expected to grow. Regarding investments, domestic semiconductor companies are expanding advanced manufacturing processes and high-end packaging.