April 4, 2005
The percentage of Taiwanese manufacturers that are optimistic about the economic climate over the next six months jumped from 26.9% in February to 54.6% in March, according to a survey conducted by the Taiwan Institute of Economic Research.
Among the reasons for this dramatic rise in the confidence of Taiwanese manufacturers are reports that the influential Financial Times Stock Exchange, anticipating future growth in Taiwan's stock market, is expected to begin listing Taiwan as a developed market in September. Also, with better-than-expected economic performances in the United States and China projected to boost domestic demand in these important economies, Taiwan is projected to see a subsequent rise in its export value.
While most manufacturers are optimistic, there are still a few pessimists. However, those taking a negative view of the next half year dropped by more than half from 18.2% in February to 8.5% in March. The percentage of manufacturing enterprises expecting the economic climate to remain the same also fell considerably from 54.9% to 36.9%.
In line with this optimism, TIER does not expect Taiwan to suffer greatly from high oil prices in 2005. The institute asserts that, despite the general view among foreign research organizations that global oil prices will continue to fluctuate between
USD 50-60 this year, Taiwan will not be negatively affected in the short term as long as it does not experience a rise in the prices of water, electricity and retail petroleum products.
(United Daily News)
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