 |
|
The outbreak of Delta variant likely to dwarf global economic growth
TIER’s service composite indicator finally on the rebound |
| The outbreak and nonstop spread of Delta virus variant have shown no signs of diminishing. As the notorious virus variant has been forcing many economies to readopt strict measures in response that are very like to increase uncertainties and dwarf economic growth. The Asia Pacific Economic Cooperation (APEC) had its second round of safe passage roundtable on 23rd September trying to cope with the impacts, enhance connectivity and revitalize economy. Despite that, the economic conditions in the near term are as vague as mud. Nevertheless, the market demand for end products, namely the US and European markets, nowadays remain strong and solid because of reopening with improving vaccination rate. The Taiwan Institute of Economic Research (TIER) issued its business composite indicators in August. The the manufacturing sector and service sector composite indicators are moving at diverse directions, the former continued to drop, and the latter was finally on the rebound after four-month of consecutive decrease due to the Three-level Alert measure; nevertheless, the construction sector composite indicator increased again since July this year. ...Read more |
 |
|
 |
| Central Bank working to avoid manipulator label |
| The central bank would continue communicating with the US to avoid being labeled a currency manipulator next month when the US Department of the Treasury renews its list, the bank said on Thursday, 23rd September 2021. Taiwan would likely remain on the watch list without being named a currency manipulator, even though it has met the three criteria: having a trade surplus of more than US$20 billion, a current account surplus exceeding 2 percent of GDP and intervention operations surpassing 2 percent of GDP, central bank Governor Yang Chin-long said. The US said in an April report that Taiwan, Vietnam and Switzerland met the criteria, but there was not sufficient evidence to link the results to outright manipulation. The US understood that the COVID-19 pandemic and major central banks’ money-printing programs helped account for the imbalances, Yang said. Taiwan would continue to argue that the criteria are not suitable measures as long as the pandemic lingers and loose monetary policies prevail, which are driving up demand for electronics and the New Taiwan dollar, he said. Strong exports inflate Taiwan’s current account and propel hot money to the local exchange market, Yang said. The central bank has no choice but to step in and slow the effect of capital influxes on the local currency, Yang said, adding that a strong NT dollar would erode corporate profitability. “Taiwan’s interest sits on top of our concern list,” he said. One way to address trade imbalances is for Taiwan to stop selling chips, but the US and the world need them, Yang added. (Source: Taipei Times). |
|
|
|
|
 |
|
|
 |
| |
Taiwan Economic Research Monthly
Looking forward to the innovative thinking and policy of digital development in Taiwan |
| ‧ |
In order to respond to the trends and characteristics of digital development, the innovative thinking required in policy should cover mastering the specific issues of digital development in Taiwan, the need for problem-oriented design of innovation policies, in addition to the participation and communication of stakeholders are becoming more and more important. Although we currently have the "Taiwan 2030 Vision" as the policy direction, it is recommended that a set of indicator systems that can measure domestic digital development should be well planned, the legal system conducive to digital development should be continuously optimized, and the policy promotion ecosystem for digital talents should be formed. And the formation of a policy package that integrates the needs of multiple parties and focuses on objectives. The OECD is committed to the promotion of digital development measurement and has established a national-level digital development measurement system, which will help the government's policy focus and resource input efficiency. The system can be used as a reference for Taiwan's digital development policy promotion and response strategies.
|
|
|
|
|