November 2021  
Inflationary pressure overtly restraining demand for end products
TIER’s service composite indicator still mounting consecutively
Unceasingly hiking prices in commodities and bottlenecking shipping and goods distribution systems have jointly forming a world-wide serious problem, inflation. As a result, the inflationary pressure has obviously limited the demand for end products in the US and Europe. In addition, new type variant virus has emerged and caused further impacts on the world economy that could potentially end the ongoing expansion binge. On the other hand, seasonal demand is coming that might offset the downside to a certain extent. With mixed business atmospheres, the service composite indicator issued by the Taiwan Institute of Economic Research (TIER) on 25th November standing at 96.76 points, the third month of consecutive increase. However, both manufacturing and construction composite indicators went down. Taiwan’s exports in October 2021 increased by 24.60% compared with the same month of 2020, the consecutive eight-month in double digit growth, as a result of a strong market demand for ICT parts and components and other merchandises in addition to much lower base effect due to the COVID-19 impacts. Regarding imports, Taiwan’s imports in October 2021 increased by 37.22% compared with imports in October of 2020, also the consecutive eight-month in double digit growth; lower base effect would also be the main cause. On the cumulative basis, Taiwan’s exports and imports from January 1st till the end of October in 2021 gave a trade surplus as at US$ 53.81 billion or increase by 11.79% y-o-y. ...Read more
Taiwan likely to see inflation subside in 2022
Experts predict inflation will fall below 1% next year, as Taiwan’s economy is likely to have flashed red in October for the ninth month running, National Development Council (NDC) Minister Kung Ming-hsin said on November 24th 2021. In the NDC’s five-color system reflecting the country’s performance, red signifies an overheating or booming economy. The results for the month of October was announced on November 26th 2021, but Kung expressed optimism. As oil prices begin to fall and the disruption of supply lines comes to an end, inflationary pressures will diminish, leading the increase in the Consumer Price Index (CPI) to decrease from an estimated 2% for 2021 to less than 1% next year, according to the minister. (Source: Taiwan News)

US-China tech war: Beijing calls on Washington to stop further dialogue with Taipei on supply chain resilience, semiconductors (Source: South China Morning Post)
Taiwan Economic Research Monthly
International communication market and digital platform development under the pandemic
After the outbreak of the COVID-19 pandemic, the importance of external contacts has spurred a surge in demand for communications and broadband networks, driving the boom in the communications market. The control measures such as lockdowns and home isolation have accelerated the transformation of media and entertainment consumption behavior. In order to revitalize the media and audiovisual industry, governments of various countries have successively adopted industrial recovery plans, committed to combating false information from social media, and accelerating digital transformation. In view of the inevitable trend that daily life must coexist with the pandemic in the future, digital transformation is indeed needed in response to the fast-changing business environment.
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