Indicators have signaled an optimistic turn in Taiwan’s economy. According to the November monitoring index released by the Council for Economic Planning and Development (CEPD) on December 28, 2009, seven of the components—including customs-cleared exports, manufacturing sales and the industrial production index—flashed the yellow-red light, signaling a heated economic boom, for the first time in 25 months. The boom is expected to maintain intensity during the first half of 2010.
The CEPD said that this yellow-red indication is completely due to the unprecedented steep decline in 2008. In fact, some of Taiwan’s production indices, such as the industrial production index, remain below November 2007 levels. Consequently, the monitoring indicators cannot be interpreted to suggest that the economy is overheating.
National Central University’s Research Center for Taiwan Economic Development also released survey findings that Taiwan’s consumer confidence index rose to a 20-month high of 65.39 in December 2009, which was 2.92 points higher than the previous month, marking a return to the level before the global financial crisis. The confidence index for the “time to invest in stocks over the next six months” recorded the biggest increase at 98.5 points, followed by the index for “domestic economic outlook over the next six months” at 60.95 points.