Wu Daren, executive director of the Center for Taiwan Economics at Central University, believes that Taiwan's biggest economic challenge this year is not commodity prices, but the decline in exports.

(Central News Agency)

[Reporter Xu Ziling/Taipei Report] The Central University Taiwan Economic Center announced yesterday that the March consumer confidence index was 64.

Forty-seven points, up two points from the previous month, three consecutive rises, and all sub-indicators rose.

Wu Daren, executive director of the Taiwan Economic Center of Central University, said that consumer confidence seems to be picking up, but whether it can stop the decline and rebound from then on, he bluntly said it is "not easy", because there are still hidden worries of export recession.

A Consumer Confidence Index (CCI) below 100 indicates pessimism, while a reading above 100 indicates optimism.

The index with the largest increase in March is "domestic price level in the next six months", which is 30.

Five or five o'clock, the month increases by three.

Four points, but Wu Daren reminded that the absolute value of this indicator is still at a very low level, showing that the public still has a deep feeling for rising prices; but the increase in the value indicates that inflation expectations are declining, which is good news for the overall economy.

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Household economic indicators have also risen. Wu Daren analyzed that the recent stock market rebound and the general cash of 6,000 yuan in the future will help, making people think that the family economy has improved slightly.

Due to the decrease in terminal demand, Wu Daren believes that the biggest economic challenge in Taiwan this year is not commodity prices, but the decline in exports; due to the bright exports in 2021, many companies feel optimistic and over-invest. Manufacturers' financing costs have risen, coupled with the increase in electricity prices, if manufacturers are overwhelmed and go bankrupt, it may cause debt default and systemic financial risks.

But he also said frankly, "Taiwan's economy is not something we can decide this year," because Taiwan is an export-oriented country and is easily affected by the international economic environment. When the pressure on exports can be alleviated depends on when Europe and the United States decide to cut interest rates.

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