Taiwan's Mfg. Industry May See Green Light in Q2 of 2013: TIER

Taipei, Nov. 9, 2012 (CENS)--Thanks to the foreseeable recovery of the global economy, Taiwan's manufacturing monitoring indicator may flash green in the second quarter of 2013, according to the Taiwan Institute of Economic Research (TIER), an economic think tank in Taiwan.

The chemicals & rubber, electronics, and electric machinery sectors are expected to see green light driven by growing global demand for chemicals, electronic parts, rubber & plastic items, oil and coal products, etc.

M. H. Kung, vice president of TIER, indicated that Taiwan's manufacturing industry has witnessed yellow-blue light this year, which might prolong to the first quarter of next year, but turn green in the second, without steadily remaining so into the third or fourth quarters contingent on the resolution of the U.S. fiscal cliff and China's economic situation.

Taiwan adopts a five-color gauge to depict the economic performance: green means stable economic growth; red reflects the economy is overheated; yellow-red shows a heating economy; yellow-blue signals an economic slowdown; and blue indicates a recession.

Among Taiwan's industries, TIER predicts the metal machinery, daily necessities, and transportation sectors might still see yellow-blue in 2013; while pulp, paper & paper products and furniture might stay gloomy amid a blue light.

TIER further forecasts Taiwan's economic growth to be 3.42% for 2013 and the annul growth of consumer price index (CPI) and private investment at 1.34% and 3.41%, respectively, all of which being better than those of this year.

TIER also predicts Taiwan's private spending next year to rise 2.9% for a sharp projected YoY rise of 1.94 percentage points.