Taiwan’s economy experienced stable growth in March as a leading index flashed a “green light,” but economic momentum appeared to slow from February, according to the National Development Council (NDC).

Data released by the NDC, the top economic planning agency in Taiwan, on Wednesday showed the composite index of monitoring indicators, which reflects the existing economic situation, for March fell by three points from a month earlier to 31, which falls in the green light category ranging between 23 and 31. March’s green light represented a fall from February’s yellow-red light, which ranges between 32 and 37 points.

The composite index reading for March was the lowest since October 2020, when the index stood at 30.

The NDC uses a five-color system to gauge the country’s economic performance, with blue indicating economic contraction, yellow-blue representing sluggishness, green signifying stable growth, yellow-red referring to a warming economy, and red pointing to an overheated or booming economy.

Among the nine factors in the composite index for March, the sub-indexes on industrial production, changes in share prices, and business sentiment among manufacturers moved lower by two, one and one point, respectively, from a month earlier, driving the overall index’s decline, the NDC said.

In addition, the leading indicators that gauge the economic climate over the next six months also moved lower by 0.40 percent from a month earlier to 100.25, marking the fifth consecutive month of a month-on-month decline, according to the NDC.

Despite the decline in the composite index, Wu Ming-hui (???), head of the NDC’s Department of Economic Development, said the local economy remained stable and the fall in the sub-indexes in the composite index largely resulted from a relatively high comparison base over the same period of last year, when the local economy grew in a rapid manner.

“There is no sign that the economy is retreating, but just that growth momentum is moderating,” Wu said.

Commenting on the leading indicators, Wu said the aggregate fall of the indicators was 1.68 percent, and the magnitude was not intolerable.

However, Wu warned of uncertainty over the global economy, citing the war waged by Russia against Ukraine, and advised keeping an eye on how lockdowns in China to deal with COVID-19 outbreaks will affect the global supply chain.

Source: Focus Taiwan News Channel