Wed, Dec 23, 2015 - Page 13 News List

Firms pessimistic about the economy next year: poll

Staff writer, with CNA

More Taiwan-based enterprises expressed pessimism rather than optimism toward the economy next year, according to a survey released yesterday by 104 Job Bank.

The job bank said that 39.5 percent of the 886 polled enterprises said they expect economic fundamentals to worsen next year compared with this year, while 23.6 percent said the economy would fare better next year.

It said that 34.5 percent believe next month’s presidential and legislative elections have created uncertainty in the local market.

104 Job Bank president Hung Kuang-li (洪廣禮) said many enterprises fear that the outcome of the election would affect cross-strait relations and the regional political situation.

In addition to the political concerns, 30.2 percent were worried about a “brain drain,” while 26.5 percent said the government’s failure to present a clear industrial policy bothers them, the survey showed.

104 Job Bank said that 23.3 percent are concerned about an aging society, while 21.2 percent are afraid of escalating competition from Chinese competitors, dubbed the “red supply chain.”

The service sector appeared more downbeat than other sectors, with 42.3 percent expressing pessimism about the economy, saying that it would worsen next year compared with this year, while just 23.4 percent said the opposite.

The net pessimism level in the industrial sector stood at 18.9 percentage points, while the old economy sector came in second with a net pessimism level of 17.5 percentage points. The electronics sector recorded the third-highest pessimism level at 14.1 percentage points, the survey showed.

The survey, conducted from Nov. 12 to Nov. 24, had a confidence level of 95 percent and a margin of error of plus or minus-3.29 percentage points.

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