February 2023  
The downturn in the manufacturing industry and the recovery of the service industry are common phenomena in the global economy
TIER’s manufacturing and service composite indicators signal possible hint of bottoming out
Recently, a common phenomenon has appeared in the international economy. The manufacturing industry generally has excess inventory and a downturn in the economy; while the service industry has benefited from the unblocking of the epidemic, and most of them are showing a recovery trend. For instance: the service industry is recovering faster than expected, but the performance of the manufacturing industry in the United States, Europe and Japan is still rather weak, demand is sluggish and inflationary pressure is still high, and interest rates continue to hike. This led to a gloomy economic outlook, but with the rapid shift in China’s COVID-19 policy, some international forecasting agencies are generally optimistic about China’s economic prospects this year. As for Taiwan’s domestic manufacturing industry, it is expected that manufacturers’ destocking and inventory adjustments will come to an end in the near future, coupled with China’s economic recovery, the proportion of manufacturers who are optimistic is significantly higher than that who are pessimistic about the economic performance in the next six months. The service industry has benefited from the long holidays of the Lunar New Year this year, which has led to an increase in the purchase of goods and outings. In addition, after the border was unsealed, the number of people entering and leaving the country soared, and the domestic and foreign tourism markets rebounded sharply. Therefore, retailers and hoteliers are obviously optimistic about the economic performance of the month. The manufacturing and service composite indicators issued by the Taiwan Institute of Economic Research (TIER) as a result signal possible hint of bottoming out. ...Read more
Taiwan-Lithuania event leads to US$26 million in trade opportunities: TAITRA
A business matchmaking event between Taiwan and Lithuania on 21st February 2023 resulted in signed and potential orders worth a total of US$25.88 million, according to the Taiwan External Trade Development Council (TAITRA). The trade event saw 60 Taiwanese and 18 Lithuanian companies in various sectors including manufacturing, logistics and food industries either sign deals or consider future orders, TAITRA said in a press release. The Lithuanian businesses include shipping company Limarko Shipping, furniture manufacturer VMG Group, electrical equipment manufacturer Harju Elekter, and technology firm BOD Group, TAITRA said. As the Baltic state is strong in the field, it is hoped that the partnership could facilitate the industrial transformation of relevant businesses in Taiwan, according to the Ministry of Economic Affairs (MOEA), which has been supporting the project (Source: Focus Taiwan).

January retail sales, food/beverage revenue hit record highs (Source: Focus Taiwan).
Industrial output drops to two-year low (Source: Taipei Times).
Taiwan Economic Research Monthly
Review and Prospect of APEC Regional Economic Resilience
APEC's organizational design is not specifically designed to respond to external shocks; however, external shocks will weaken APEC's economic resilience and erode people's well-being. In view of the fact that when COVID-19 impacted the APEC region, APEC economies adopted strict measures to reduce the impact of the deadly virus spread. Therefore, economic resilience referring to the ability to minimize the damage caused by sudden shocks has been on top of recent APEC agendas. This is not the strength of APEC's organizational design and organizational characteristics, but it is one of the most watched topics in APEC lately. Looking forward to 2023, the United States will be the host economy of APEC, and the priorities of a) interconnected: building a resilient and interconnected region that advances broad-based economic prosperity; b) innovative: enabling an innovative environment for a sustainable future; and c) inclusive: affirming an equitable and inclusive future for all will be set for the theme of "Creating a Resilient and Sustainable Future for All".
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