Taipei: Taiwan's economy flashed a "green" light, indicating stable growth, for the third consecutive month in July, according to a report released by the National Development Council (NDC) on Thursday.

According to Focus Taiwan, the NDC employs a five-color system to track the economy: red signals overheating, yellow-red indicates a warming economy, green signifies stable growth, yellow-blue reflects sluggishness, and blue denotes recession. The NDC forecasts that Taiwan's economy will remain at a green light in the second half of the year, despite the 20 percent tariff imposed by the United States, as stated by Chiu Chiu-ying, head of the NDC's Department of Economic Development.

Chiu mentioned that the global economy is still resilient, with international institutions raising their forecasts for global economic growth in the latter half of the year. This indicates that developed economies are stable, and their demands are supporting the economy. Additionally, artificial intelligence-related demands are thriving, with U.S. tech giants continuing to expand their capital expenses, which will boost Taiwan's supply chains and maintain its export levels.

However, Chiu also noted that leading indicators of the economy continued to fall as coincident indicators rose. This suggests that while Taiwan's economy is stable, subsequent changes need to be closely monitored. Details on semiconductor tariff rates remain pending amid tariff discussions. U.S. President Donald Trump has stated that companies with factories in the U.S. would be exempt from the taxes, implying that most major Taiwanese chipmakers, including Taiwan Semiconductor Manufacturing Co., would not be affected unless very unfavorable developments occur.

Regarding private consumption, Chiu indicated that the public has been delaying car purchases due to uncertainties surrounding car tariffs, resulting in underperformance of related indexes in the first half of the year. Once the tariffs are defined, car purchases may increase and help drive up domestic demand, she added.