Manufacturing, service sector enjoy positive growth: TIER

By Linger Liu, The China Post

TAIPEI, Taiwan — The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday released findings showing that over a 3-month period leading up to January 2013 both the manufacturing and service sectors enjoyed consecutive revenue growth.

The TIER said the manufacturing sector’s monthly revenue is at a 22-month high, while the service sector is at a 10-month high.

According to TIER President David Hong (洪德生), the future growth forecasts for both sectors seem very optimistic. The president said the in manufacturing sector is forecast to grow 45 percent by the end of 2013. The TIER said it increased 9.1 percent from December 2012, when it stood at 35.9 percent. The president said the depreciation of Japan’s yen has caused other countries to join likewise conduct currency depreciation efforts. Hong said this may affect Taiwan’s trade and exports. Global Economy Takes Account The president noted that Taiwan’s economy is heavily tied to the U.S., and so the latter country’s future financial policy will likely affect Taiwan’s economy. Further factors to note include the impact of the global monetary battle and the performance of future international financial markets, Hong said.

The president said in light of the global economy’s improvement in the fourth quarter of 2012, it is reasonable to expect to see consecutive growth in both the manufacturing and service sectors.

The domestic economy remains a key factor in ensuring continued growth, Hong said, noting that the domestic service sector and stock market may be powerful drivers of future growth. In January of this year, the stock market and export markets seem to be performing well, Hong said. Caution About Future Growth

The president iterated that though economic signs seem positive, it remains imperative to retain a degree of caution, citing the Greek debt crisis and problems in the global market.

Hong said many of Taiwan’s economic research institutes forecast that the economy’s 2013 growth will sit below 4 percent, noting that the government’s optimistic forecast — which would approach a “golden cross” moment where economic growth is above 4 percent and the unemployment rate is below 4 percent — may only come about in the second half of the year.