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Stabilized global conditions fuel Taiwan’s growth potential
TIER business outlook is more optimistic at present |
| A significant part of global uncertainties have been dismissed, and the more stabilized conditions help fuel Taiwan’s growth potential. The Euro zone sovereign debt crisis has been somewhat under control at least for the time being, as Greece was finally granted the most desperately needed second bailout. With the temporary relief of a possible Greek default, market confidence in Europe is rebuilt, and bond yields have stopped from rising further. Besides Europe, the US economic readings have improved in many fronts: employment, production, and sales. Despite China is inevitably preparing for a soft landing, its East Asian neighbor with similar economic size, Japan, is looking forward to a positive recovery in 2012 out of a miserable 2011. The Japanese economic revitalization would be able to offset the likely Chinese decline. Nevertheless, the climbing crude oil prices could also pose a threat to the world recovery. Downside risks emerge yet are counteracted by upside thrust. In summary, there are currently 3 good signs from Euro area, US, and Japan and 2 bad warnings associated with China and oil price that jointly add up to the external conditions facing Taiwan. ...Read more |
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| Taiwan-China trading pact remains as a positive sign to foreign companies |
| The economic effect of the Taiwan-China trade pact still gets attention from foreign companies; the pact is a positive sign for foreign companies to set up their businesses in Taiwan, an official from the France Taiwan Chamber of Commerce and Industry (CCIFT) said. “the Economic Cooperation Framework Agreement(ECFA) is only a framework,” CCIFT Vice Chairman Denis Forman said on the sidelines of the chamber’s annual general assembly. “It gives an extra incentive for companies to come here, but in reality, it is difficult to assess the outcome of the ECFA because it is just beginning, and it still needs some time for foreign companies bringing their businesses to Taiwan” he said. |
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TaiwanEconomic Research Monthly
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