There are signs indicating that Taiwan's economy may bottom out soon amid an easing of global economic uncertainty,as the sentiment in its manufacturing sector has improved and the prospects of its exports have become more upbeat,the Taiwan Institute of Economic Research(TIER)has reported.
Taiwan's manufacturing composite index edged up 1.7pp to 90.23 in August,the second straight monthly increase for the seasonally adjusted indicator,TIER said.
A total of 25.3%of manufacturers surveyed by the think tank in August believe that the economic climate has grown more bullish compared to a ratio of 21.2%in July,while the portion for those who believe the economy was still in doldrums declined to 36.7%in August from 40.4%in the previous month,the survey showed.
Petrochemical,plastics and precision machinery manufacturing industries are expected to see improvements,while the segments producing consumer goods,iron and steel products,metal processing,and education and entertainment devices will remain weak,added TIER.
Taiwan's exports and related export indexes will improve in the fourth quarter of 2012,as economic uncertainties in Europe,the US and China will gradually subdue thanks to monetary easing policies initiated by central banks of the world's major economies,while China has re-ignited its fixed-capital investment projects,TIER added.
Perng Fai-nan,governor of Taiwan's central bank,has also stated that Taiwan's economy will turn better,driven by a 25%sequential decline in vegetable prices as well as an projected over 10%growth in exports in September.
Perng,who made the remarks during an interpellation session of the Legislative Yuan(Parliament)on September 26,noted that Taiwan's GDP growth will not deteriorate during the rest of 2012 since exports contribute 70%to its GDP growth.
Meanwhile,Premier Sean Chen has also instructed the Council for Economic Planning and Development(CEPD),Taiwan's top economic planning agency,to be ready to roll out a concrete plan prior to February 2013 for the establishment of free economic demonstration zone(s)in Taiwan.
The government plans to grant free movement of capital,personnel,goods and related information in the planned demonstration zones.
