Monday, July 3, 2017

Cyclical recovery of the world economy continues

Cyclical recovery of the world economy continues
TIER composite indicators suggest Taiwan's growth turn tepid
Despite the fact that the first quarter of US economy's performance this year is not as cheerful as previous quarters, the world economy in general is continuing its cyclical recovery. However, Taiwan's growth of recovery may turn tepid according to the composite indicators recently issued by the Taiwan Institute of Economic Research (TIER).
Taiwan's exports in April 2017 increased by 9.39% compared with the same month of 2016. Regarding imports, Taiwan's imports in April 2017 increased by 23.5% compared with imports in April 2016. From January 1st till the end of April this year, Taiwan's exports and imports gave a trade surplus of US$ 13.57 billion or a decrease by 20.32% on a y-o-y basis.
Taiwan's consumer price index (CPI) went up by 0.12% in April 2017 compared with the same month of previous year. The current inflation rate has gradually moved back down compared with previous months. The core inflation rate stood at a relatively more heated ratio as 1.01% in April, 2017. In addition, the wholesale price index (WPI) increased by 1.12% in April 2017 on the year-on-year basis. Basically, the annual increasing ratio of WPI has exceeded the ratio of CPI that indicates corporate profits on average have been squeezed.
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