Economic signals returned to the network of yellow and red lights and screamed “Will it collapse?”

The National Development Council announced today that the business climate signal for September has reverted from red to yellow, Wu Daren, CEO of the Taiwan Economic Development Research Center and professor of economics at National Central University, said in an interview that although. Yellow and red lights mean that the economy is good, and the market is still optimistic about the stock market. However, as an AI supply chain, Taiwan’s export structure is dominated by AI-related information communication and electronic components. The biggest risk to traditional manufacturing is the AI ​​bubble.

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The National Development Council announced today that the business climate signal for September has reverted from red to yellow. File photo: Central News Agency

The National Development Council today released a business sentiment signal for September, which returned to amber from a red light in August, with the score also falling to 34 points, a new low in six months. Many netizens asked whether the stock market could rise, shouting “it’s collapsing”, “the light turns red and yellow, so it’s bullish and bearish” and “spray down”.

Is it better to return to yellow and red light? Expert: This means the economy is still good

Wu Daren said that although the light signal has returned from the original red light to yellow and red, the yellow and red lights still represent good business conditions, which is still warmer than the stable green, also announced by the National Central University’s Taiwan Economic Development Research Center in the 10 monthly consumer confidence index. , only one of the six indicators rose rather than fell, namely stock market confidence, which shows that people still have confidence in the stock market.

Wu Darren also explained that Taiwan’s economy is still developing, mainly as Taiwan’s AI supply chain is also driven by it, which has also caused abnormal development. That is, most of the export AI is other industries such as traditional Chinese medicine are not doing well, so there will be risks.

Wu Darren points out that the recent fluctuations in AI are happening because there is still skepticism in the market, and the biggest risk is the AI ​​bubble that companies have a higher share of when the global economy stabilizes. Invest in AI To compensate for the losses, the AI ​​bubble will not burst immediately, but will gradually shrink or soften.

But the current economic situation in Europe and China is bad and the current unemployment rate in the United States is still above 4 percent, although it depends on the United States on spending to support the domestic economy, next Christmas will start, but after Christmas you will have to face the risk again.

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