October 2022  
The outlook for the global economic climate is still bleak
TIER’s composite indicators decline as end demand shrinks
Looking at the recent international economic situation, all international agencies including the International Monetary Fund (IMF), OECD, IHS Markit, and EIU have lowered their economic forecasts for the world and major economies. For example, according to the estimated data released by the IMF in October 2022, the global economic growth rate will drop from 6% in 2021 to 3.2% in 2022, and stand at only 2.7% in 2023. The IMF said that global economic activity is experiencing a wide-ranging and unexpected slowdown. High inflation has not only made people's living costs soar, but also led most countries to adopt tighter monetary policies to combat inflation. The possibility of escalation, the global economic outlook has turned bleak, and the slowdown will continue into 2023. In terms of domestic manufacturing, end demand continues to weaken, and traditional manufacturers continue to be pessimistic. In addition, due to weaker demand for consumer electronic products, the adjustment period of customer inventory continues to lengthen, and the impact of the US-China technology war is expanding. The Taiwan Institute of Economic Research (TIER) issued monthly composite indicators in October 2022; all three indicators including manufacturing, service, and construction sector composite indicators decline consecutively. Taiwan’s economic performance in external markets has been slowing down, and the export orders have been weakening. Taiwan’s exports in September 2022 decreased by only 5.29% compared with the same month of 2021. Regarding imports, Taiwan’s imports in September 2022 decreased by 2.37% compared with imports in September of 2021. Taiwan’s exports and imports from January till the end of September 2022 gave a trade surplus as at US$ 40.68 billion or decrease by 13.29% year-on-year due to more costly in imports of commodities and slowing growth in exports compared with those in 2021. ...Read more
Taiwan envoys promote CPTPP membership at trade seminar in Peru
Taiwanese officials from the Ministry of Foreign Affairs were in Lima, Peru as part of the 15th International Seminar for Economic Cooperation between Taiwan and Peru. They were joined by representatives of Asus, Wan Hai shipping, and other Taiwanese businesses. The event, held between Oct. 18-22, 2022 served as a showcase of Taiwanese companies in Peru, which is Taiwan’s fifth largest trading partner in South America. The conference drew over 200 people representing businesses and industry associations in Peru. Taiwan’s Vice Minister of Foreign Affairs, Alexander Tah-ray Yui, addressed attendees at the event in a prerecorded message. He said that cooperation between Peru and Taiwan has been steadily growing in recent years under the frameworks of the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum. Yui said that Taiwan is actively campaigning to join Peru as a member of the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP), and that if Taiwan’s application is successful, reduced tariffs on goods will greatly increase profits for Peruvian farmers and other businesses. At the event, the president of the Chamber of Commerce in Lima, Rosa Bueno de Lecari, publically expressed support for Taiwan’s inclusion in the CPTPP as an important step to expand trade relations between Taiwan and Peru. The chairman of Peru’s Congressional Committee on Foreign Trade and Tourism, Edgar Tello, was also present. He said that Peru’s industries are very interested in the Taiwanese market and eager to strengthen relations, affirming the positive contributions Taiwan has brought to Peru’s economy (Source: Taiwan News).

Industrial production ends 31 straight months of year-on-year growth (Source: Focus Taiwan).
Taiwan retail sales climb 7.5% as consumption returns to levels before the pandemic (Source: Taipei Times).
Taiwan Economic Research Monthly
The huge business opportunities derived from the vigorous development pet industry
With the global trend of declining birthrate and growing demand for companionship, the pet industry has developed rapidly in recent years. According to international pet economic statistics, the economic scale of the global pet market is estimated to exceed US$260 billion in 2022, with a compound annual growth rate of 5%. Even in 2020, the most severe year of COVID-19, and the global economy showing negative growth, the pet economy still maintains a 5% growth rate, which shows that the charm of cute pet economic development cannot be stopped. According to the research survey conducted by the Taiwan Economic Research Institute in 2020, the market size of my country's pet industry has exceeded NT$50 billion. It is also predicted that the number of “hairy children” in Taiwan will exceed the number of children between 2023 and 2027. It is expected that the industry will soon enter a golden period of development. In the future, whether Taiwan’s pet industry can sustainably maintain its growth momentum, as shown by the development experience of developed countries, how to meet the relevant needs of the owner's rising awareness of animal protection will be the key focus.
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