June 2010  
Manufacturing sector felt the pinch of the Euro Bond Crisis
While the service sector continues its cyclical upturn momentum
Taiwan’s external sector continues to improve as global outlook recovers. Exports saw a sixth consecutive month strong year-on-year rebound in April with exports soared by 47.8% or USD 21.93 billions. Imports for April reflected the increase in export demands as well as new investment initiative, which was a 52.6% increase year-on-year, with a trade surplus of USD 2.55 billions. Cumulative export data for the first four months of 2010 saw an increase of 51.2% YoY, or USD 83.73 billion, with a cumulative trade surplus of USD 7.43 billion, USD 3.33 billion less than the same period in the previous year. As the world economy stabilises, trade figures for Taiwan is likely to maintain its growth momentum, be it at a more sustainable pace.

The global economic recovery has also boosted industrial production in Taiwan. Fuelled by the strong external demand and lower base-year, Industrial output grew by a historic 31.38% YoY in April. Among the individual sectors, the manufacturing sector went up by 33.54%, the production of electricity and natural gas went up by 3.17%, whereas the construction sector contracted by 14.11%. Cumulative industrial output for the first four months of 2010 saw an increase of 42.62% with the manufacturing sector increased by 45.64%; mining and quarry sector, electricity and gas and water supply sectors increased by 6.03%, 8.24% and 0.90% respectively. Only the construction sector saw decline in output and contracted by 9.16%

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The Central Bank raises interest rates in surprise
With an aim to guide interest rates' gradual return to neutral level, the Central Bank raised its benchmark policy rates by 0.125%unexpectedly; the move will see discount rate increase to 3.625%, the rate on accommodations with collateral to 1.75%, and the rate on accommodations without collateral to 3.625%. This move is the Bank's first interest rate hike since the onset of financial crisis in February last year.

ECFA negotiations wrap up in Taipei
Taiwan and China have wrapped up the final round of ECFA talks on June 24th, which concluded an 539 items of "early harvest" list for Taiwan and about 267 items for China . The "early harvest" list refers to goods and services that will be subject to an immediate tariff concessions or exemptions after the ECFA is signed. The priority tax cut list forms the centerpiece of the agreement, and the agreement will be signed on June 29th in Chongqing, China.

Cross-strait financial regulations revised to open up the market
Regulation eased for Mainland Chinese business professional
Mainland Chinese professional are offered extended stay in Taiwan
Amendaments for major government procurement procedure
APEC SME Economic Crisis Monitor newsletter is open for subscription
Taiwan Economic Research Monthly
Future outlooks of Taiwan new energy regulation
Energy strategy under the changing climate
Adjustments to the energy sector's negative externality - the new energy tax policy review
Operating strategy of the amended energy management regulation
Opportunities and aims of the renewable energy development policy
Assurance of energy safety- a reflection on oil management law
Direction of Taiwan's energy policy debate for Sustainable Energy Law
Natural gas enterprise law and the development of natural gas enterprise
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