TAIPEI (Taiwan News) — Taiwan Institute of Economic Research said Tuesday that the November manufacturing indicator flashed yellow-blue, indicating a sluggish economy.

The institute said in a press release Taiwan’s November manufacturing index was 12.29 points, a 0.91 increase from last month. Although the index has risen, manufacturing growth remains slow, per UDN.

Strong demand for AI and high-performance computing has driven wafer and printed circuit board production, per CNA. The rebound in overseas orders also supported import and export growth.

The institute explained that if China continues to export its overproduced products to other countries, the competition for these products could affect its neighbors. Since the US and China are Taiwan’s important export markets, their economic policies will influence Taiwan’s manufacturing industry.

Additionally, China has recently supported its economy through increased consumer stimulus and loose monetary policies, but the sluggish real estate market will weaken consumer willingness.

The institute added President-elect Donald Trump's trade policies could positively or negatively impact the global economy next year.