TAIPEI (Taiwan News) — Taiwan’s November economic indicator flashed yellow-red for the third consecutive month, indicating a warming economy.

The National Development Council said in a Friday press release the November economic indicator was 34, up two points from last month. AI demand, year-end exports, and improvements in traditional industries contributed to this growth.

However, manufacturing confidence, export trends, finance, employment, and construction indicators all declined, per CNA.

NDC Economic Development Department head Chiu Chiu-ying (邱秋瑩) said the decline mainly reflects concerns about Donald Trump’s economic policies. Construction has been affected by a sluggish housing market, but government investment will drive projects, she explained.

Chiu said even though the US’ new policies may affect global trade, most major forecasting institutions believe that next year’s growth rate will still be better than this year. AI and interest rate cuts will recover trade, and Taiwan's exports will grow.