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Taiwan's economy shows signs of bottoming out: CEPD

  • Source:National Immigration Agency, Ministry of the Interior
  • Date:2009/7/28
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Taipei, July 27 (CNA) Taiwan's economic downturn showed signs of slowing as a key overall economic monitoring indicator finally improved after remaining at its lowest level for nine months, a Council for Economic Planning and Development (CEPD) official said Monday.

"The overall composite score of the monitoring indicators was 17 in June to qualify as a yellow-blue light on the CEPD-designed scaling system, " said Hung Jui-pin, director of the CEPD's Economic Research Department.

In the CEPD system, a yellow-blue light means the economy is gradually gaining momentum after a recession, while a blue light indicates that a recession exists, Hung explained.

Taiwan's economy had flashed a blue light every month since last September. The country's longest recession was recorded around 2001 when the economy flashed a blue light for 15 months in a row due to the burst of the dotcom bubble.

According to Hung, June's composite score of 17 was five points higher than in May and marked the third consecutive month-on-month rise.

Moreover, Hung said, the June index of leading indicators rose 1.8 percent from May, another sign that the country's economic slowdown may be easing.

The leading indicators index, which is used to gauge economic performance in the coming three to six months, showed increases in overtime hours, export orders, money supply, semiconductor shipments and share prices, Hung explained.

The June index of coincident indicators, which tracks the current pace of economic activity, rose 1.1 percent from a month earlier, compared with a rise of 1.9 percent in May, Hung said.

"While the economy has showed some positive signs, the job market remains difficult," he added. "It is necessary to continue to closely monitor its movement."

Taiwan suffered a record 10.24 percent economic contraction in the first quarter of this year as exports, which comprise nearly two-thirds of its GNP, floundered on lower demand from major export markets around the world.

The Chung-Hua Institution for Economic Research, a think tank, said earlier this month Taiwan's economy is expected to begin recovering from the recession in the fourth quarter as exports regain momentum. (By Sofia Wu)

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  • Updated: 2010/9/7 14:36:00