Taiwan Economics in Brief – December 2020

Ending the Year on a High Note

With the winter months approaching and much of the world experiencing upticks in COVID-19 cases and deaths, new lockdown measures in Europe and the U.S. could result in a drop in demand for end products and a slowing of economic recovery.

That prospect has not done much to deflate growth predictions or consumer confidence in Taiwan, however. In fact, according to Taiwan’s Directorate General of Budget, Accounting and Statistics, the island economy could wind up boasting GDP growth for 2020 of 2.54%, 0.98 percentage points higher than its previous forecast made in August.

In addition, National Central University in November recorded a 1.8-point rise in its Consumer Confidence Index (CCI), citing the increased optimism of investors in the local equity market. The CCI tracks the level of public confidence over the next six months in areas such as employment, family finances, and consumer prices, among others.

Compared to the same month a year ago, exports in October increased by 11.2%, thanks to strong demand for ICT products and components. Imports decreased by 1%. Taiwan’s October trade surplus came to US$47.77 billion, up nearly 30% from the same month last year.

The Taiwan Institute of Economic Research’s manufacturing composite index increased in October for the sixth consecutive month, rising 0.81 points from the previous month. This upward revision reflects continued optimism regarding business performance in Taiwan’s manufacturing sector.

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