TAIPEI (Taiwan News) – Leading economic indicators flashed a yellow-red light for February, with the score rising two points from January to 37, representing a booming economy, the National Development Council said Thursday.

According to Taiwan’s system, blue stands for contraction, while yellow-blue represents sluggishness, green indicates stable growth, yellow-red stands for a warming economy, and red means the economy is booming or overheating. The manufacturing sales and wholesale sectors, retail, food and beverage sales improved two points to flash a red light, per UDN.

However, average monthly overtime hours for the industrial and service sectors declined two points after the Lunar New Year holidays, resulting in a green light. The six other indicators contributing to the overall economic picture remained unchanged in February.

The council named demand for AI technology, the competitive advantages of Taiwan’s semiconductor sector, and the growth of exports and investment as factors in the positive picture at the start of 2025. 

International geopolitical and economic policies are the most likely elements to disrupt economic growth and are therefore to be closely monitored, according to the council.