November 2023  
The U.S. economy outperforms expectations, while the European economy remains sluggish
The manufacturing and service industries maintain unchanged economic sentiments compared to the previous month
Observing the recent international economic situation, the U.S. economy, while displaying robust growth in the third quarter, showed signs of cooling in October. Economic data revealed a decline in employment, ongoing contraction in manufacturing, and a slowdown in retail sales. These factors indicate a moderation in the U.S. economy. In the Eurozone, industrial sentiment remains subdued due to fluctuations in interest rates and energy prices. Germany, in particular, continues to experience economic contraction, dragging down the overall economic performance of the Eurozone in the third quarter. In the domestic manufacturing sector, the global economic momentum has eased, leading to a renewed decline in exports in October. While export orders and production indices continue to show negative growth, the impact is gradually narrowing due to a lower comparative base period and sustained growth in demand for high-performance computing. However, uncertainties such as the U.S.-China tech war and geopolitical conflicts persist, causing the manufacturing sector to maintain a conservative outlook for the current month and the next six months. The service industry benefited from the Double-Ten National Day holiday, driving opportunities in travel and dining. The catering industry, in particular, performed relatively well. However, global economic and trade growth momentum remains weak. Combined with continued foreign selling, the Taiwan stock market experienced a lackluster performance in October, affecting the wholesale and securities industries. In the construction industry, although there is a slight improvement in the real estate market, the October transition period between old and new construction projects has impacted individual case recognition for companies. This has kept confidence relatively subdued in the construction industry. ...Read more
Taiwan’s APEC envoy Morris Chang lauds success
Morris Chang, founder of Taiwan Semiconductor Manufacturing Co., completed his mission as President Tsai Ing-wen’s APEC envoy and conveyed four messages on her behalf at the 2023 Asia-Pacific Economic Cooperation forum Economic Leaders’ Meeting Nov. 17 in the U.S. city of San Francisco, according to the Presidential Office. Questioned during an international press event held later the same day in the U.S. city, Chang said he had social interaction with U.S. President Joe Biden and in-depth discussions with Vice President Kamala Harris and National Economic Council Director Lael Brainard. Chang said that during his meeting with U.S. Secretary of State Antony Blinken, he emphasized the importance of peace and prosperity in the region to enhance supply chain resilience, citing TSMC’s annual production capacity expansion in Taiwan while it is also investing in the U.S. and Japan. He added that, during a meeting with Japan Prime Minister Fumio Kishida, the latter expressed satisfaction regarding the progress of TSMC’s investment in Kumamoto Prefecture. In response to questions regarding the U.S.’ plan to revitalize its semiconductor industry by 2030, Chang said both Taiwan and South Korea have gone through tough competition to get to where they are today, so they are used to a competitive environment. Chang said he had engaged in relatively serious discussions with representatives of more than half of APEC’s member economies primarily on peace, economic development and supply chain resilience. He added that interest in semiconductors has increased in recent years, and many are curious about why Taiwan is so successful in this particular field (Taiwan Today).

ECCT calls for gov't action in energy, talent, internationalization (Focus Taiwan).
Industrial output decline moderates (Taipei Times).
Taiwan Economic Research Monthly
Accelerating the development momentum of small and medium-sized enterprises in the circular economy for a just transition to achieve net-zero
Inflation and carbon reduction pose significant challenges to the current development of SMEs. Reflecting on the substantial fiscal expenditures for relief and stimulus measures targeting industries, businesses, and workers introduced by various countries over the past three years, not only has this led to excess demand in times of supply shortage, causing inflationary pressures globally, but it has also compelled SMEs to cope with the rapid rise in raw material prices and labor costs despite limited revenue growth. Simultaneously, the Glasgow Climate Pact, signed at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) by leaders from around the world, has a profound impact on the future development of SMEs. The Glasgow Climate Pact recognizes greenhouse gas emissions as the main cause of global warming and aligns with the Paris Agreement advocated by COP21 in 2015, aiming to control the global average temperature increase within 2 degrees Celsius of the pre-industrial revolution average or preferably within 1.5 degrees Celsius. The pact requires countries to achieve net-zero emissions by 2050 through reducing coal use, industrial transformation, and carbon pricing, promoting a collective effort to attain these goals. Ensuring exclusivity, the pact enables SMEs, vulnerable regions, and impacted industries to collectively develop within the national vision of achieving net-zero greenhouse gas emissions.
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