Taiwan’s economy continues sluggish growth


CNA

TAIPEI, Taiwan — Taiwan’s economy remained sluggish in May, with the overall monitoring index flashing a yellow-blue light for the second consecutive month, according to business indicators published Tuesday by the National Development Council (NDC).

The NDC uses a five-color system to gauge the country’s economic performance, with blue indicating economic recession, yellow-blue representing economic sluggishness, green denoting stable growth, yellow-red referring to a warming economy and red pointing to economic overheating.

The composite monitoring indicator for May lost 1 point from a month earlier to 20, on a scale of 9-45, with a higher score representing a more buoyant economy.

The NDC said the leading index for May stood at 99.84, down 0.6 percent from a month earlier.

Meanwhile, the coincident index dropped 1.24 percent from a month earlier to 98.80.

Wu Ming-hui (吳明蕙), head of the NDC’s department of economic development, said the fall in the monitoring indicator was mainly due to weak sales in the manufacturing sector in May, which is traditionally a slow season for electronics makers.

In addition, base metal manufacturers were affected by a decrease in international raw material prices, she added.

She said the economy is expected to improve in the third quarter.