TAIPEI (Taiwan News) — The National Development Council (NDC) reported Monday (Oct. 28) that Taiwan’s economy flashed “yellow-red” in September, indicating a cooling economy.

According to a press release, Taiwan’s economic score dropped from five to 34 points, the lowest level in six months. The steep drop pushed the economic indicator from red in August to yellow-red, per CNA.

NDC Department of Economic Development Director Chiu Chiu-ying (邱秋瑩) said the annual growth rate of customs export value has shrunk. This is primarily due to weak international demand and declining oil prices, leading to unstable export momentum for traditional industry products.

Chiu said the Mid-Autumn Festival led companies to build up stock earlier. Typhoon impacts on production schedules and base period factors also affected September’s performance.

Looking forward, Chiu said the continued expansion of AI applications is expected to drive demand for domestic electronic and information products. Additionally, stocking demand in preparation for the year-end shopping season in Europe and the US will help sustain export momentum.

However, attention must be paid to the US presidential election, global trade barriers, and tension in the Middle East on the domestic economy, Chiu said.