Taiwan’s ‘softening’ economic outlook signals no quick end to setbacks in mainland China
- Seven leading Taiwanese business indicators received a composite score of 95.63 in October, down almost 1 per cent from September
- The index, which includes indicators for imports of semiconductor equipment, net hiring and export orders, is designed as an economic outlook for the next six months
Taiwan’s economy has entered “a softening phase” after a group of business indicators released on Monday declined for a 12th straight month and signalled no quick end to disruptions in mainland China, the island’s chief trading partner.
Seven leading indicators received a composite score of 95.63 in October, down almost 1 per cent from September, according to the National Development Commission.
The index, which includes indicators for imports of semiconductor equipment, net hiring, export orders, the stock market, building permits, money supply and manufacturing sector health, is designed as an economic outlook for the next six months.
By the look of things, the global economy is slowing and tech demand is further weakening
“It likely means that the Taiwan economy is in a softening phase,” said Tony Phoo, a Taipei-based economist with Standard Chartered Bank.
“By the look of things, the global economy is slowing and tech demand is further weakening.”
Mainland China, the home of some 4,200 Taiwanese firms and the top investment destination for Taiwanese capital, is placing particular pressure on the island’s roughly US$850 billion economy, economists said.
Taiwan’s exports to mainland China reached US$103 billion in the first 10 months of 2022, down slightly compared to the same period a year earlier.