June 2012  
Euro Crisis Slows Down Global Recovery, Deja vu or Nightmare?
TIER Business Composite Index Signals Uncertain Outlook
The Taiwanese economy is still dealing with headwinds from both external and internal perspectives, a deja vu yet with a bumpy nature. The US economy seemed to be finally on the track to recovery, but the deeply rooted unemployment issue has not yet been resolved. Negotiations and discussions among European decision makers have been conducted, but the rough status of Euro crisis is far from steady. The troubles have extended from Greek sovereign debt to Spanish banking institutions. Can emerging markets decouple from such dreadful threat of downturn? The answer is not quite. The economic expansion pace of China, India, and Brazil has been slowed down recently due to the worldwide weakening demand. As a result, Taiwan’s economic objective function could not be optimized with respect to said heavy global constraints. Domestic policies scheduled to be enforced by the Ma administration such as fuel and electricity price hike and tax on stock capital gains further complex the investing and financial environments in Taiwan. The TIER business composite index decreased in May following a decline in April indicates that business sectors tend to be more pessimistic later on.
Weakening global demands have constrained Taiwan’s foreign trade. The total exports of USD 26.1 billion increased by 2.2% in May over the previous month. However, the imports in May of USD 23.83 billion decreased by 4.1% Month-on-Month. Exports of items like mineral, electronic and machinery products in May grew by 20.5%, 2.5% and 5.7% respectively compared to April. Imports items such as machinery and equipments, and basic medals and products, transportation equipments, and plastics grew by 12.9%, 10.7%, 8.1% and 6.7% respectively in May Month-on-Month. Compared with the same period of previous year, exports in May dropped by 6.3%, whereas imports contracted by 10.5%. The total exports from January to May 2012 stood at USD 122.47 billion or dropped by 5% over the same period in 2011. The accumulated imports up to the end of May 2012 were in the value of USD 113.85 billion or contracted by 5.3% Year-on-Year. On the whole, Taiwan’s recorded trade has been slimming down so far.
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ANZ reduced its GDP forecast for Taiwan to 3.1%
ANZ bank reduced Taiwan's GDP forecast this year from 3.97% to 3.1% due to an expected decline in exports. In ANZ latest Greater China region report, ANZ thinks Taiwan exports are expected to drop due to the European debt crisis and a slowdown in China's economy, therefore the bank predicts Taiwan's economic growth will continue to be slow in the current quarter.

Minister of Economic Affairs (MOEA): A decline of 3.04% year-on-year in Taiwan's export orders
Taiwan's export orders totaled at US$36.47 billion in May, a decline of 3.04% year-on-year, said the MOEA in June. This interprets that the world's growth dynamics remain weak, said an official at MOEA. The figure in May was an increase of 1.07% from April. Yet after seasonal adjustment, the figure was a decline of 0.54% from April. From January to May, Taiwan's total exports stood at US$176.37 billion, a decline of 0.55% year-on-year.

The Council for Economic Planning and Development (CEPD) and the European Chamber of Commerce Taipei (ECCT) hosted a coordination meeting aiming to create a win-win business environment
A Taiwan-Japan Patent Prosecution Highway (PPH) program has started in May, which is Taiwan’s second such international patent prosecution mechanism, following with the United States that was implemented last year,
Taiwan Economic Research Monthly
Taiwan's responses to the APEC perspective
Russian purposes of participating APEC
Putin, the President of Russia, has publicly announced that participating in APEC meeting is one of Russian Oriental policies in 2007 APEC Lerders' Meeting. And, Putin succeeded in hosting 2012 APEC Annual Leaders Meeting in Russia as well as planned the leaders meeting in Vladivostok, where the city is close to the Pacific. Putin's action aims to reconstruct Vladivostok and its periphery areas to meet the requirements of modernisation and strengthen the relationships in Asia-Pacific region.
Food security development in APEC and the challenges facing Taiwan
APEC is a platform to strengthen food and agricultural cooperations among member economies as well as to response to the current food security challenges. This study works on analysis of APEC food security development and evaluation of food security issues proposed by Russia in 2012. This study also covers the challenges facing Taiwan and Taiwan's response to these issues.
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