While the US-China trade dispute has led to a reshuffling of the global supply chain and benefited some local companies, other firms have been hit by the slowing global economy and trade. Meanwhile, market observers fear that a disconnect between the stock market and the real economy might be emerging in Taiwan, as has happened in many other economies. A stock market generally tends to reflect the fundamental conditions of an economy: a booming market indicates that investors are chasing shares of companies that might offer larger dividends, as well as those that have a higher profit outlook amid a growing economy. However, the DGBAS’ forecasts are much more optimistic than those of local and foreign research institutes, which remain cautious about potential risks for the global economy. From the perspective of import and export figures, as well as corporate earnings results, the fundamental risks to Taiwan’s economy still deserve the government’s attention.

Source: Taipei Times December 01, 2019 15:56 UTC