According to the Cabinet-level Council for Economic Planning and Development, Taiwan is showing several signs of economic slowdown. Taiwan's economic soundness index was down to 15, the lowest it's been since June of 2003 when SARS took its toll on the island's citizens. The economic soundness index was 20 in June. July's leading indicator dropped for the ninth month in a row to 107.4.

The budget proposal by the Directorate General of Budget, Accounting and Statistics was approved by the Cabinet. The expense budget for the 2009 fiscal year will be NT$1.83 trillion, a 6.9% increase from the 2008 fiscal year. Expenditure in education, science and culture will use the largest portion of the budget at 18.7%.

The COA Taiwan Livestock Research Institute based in the southern county of Tainan has distilled the animal waste into fuel oil using a thermal chemical conversion technology and facility that it developed recently. The technology was researched and developed mainly because the procedures that have been used in the treatment of livestock waste are usually high energy consuming, particularly during the third stage of aerobic treatment, according to Kuo Meng-teh, a researcher and project manager at the institute. However Kuo says that it is still too early to tell whether it would be economically viable to use the technology in commercial applications, as it is still in the developmental stages in the lab.

The Shenzhen-based bank will start preparation work this year. China Merchants posted a 116 percent jump in first-half profit to 13.25 billion yuan (US$1.9 billion) as it improved loan margins and maintained fees from credit cards, withstanding government attempts to cool lending growth, it said in a separate statement on Monday.

During the first half of the year, Taiwan exported 6,634 metric tons of rice. In all of 2007, the country only exported 229 tons. The Taiwanese government has ensured adequate rice reserves for the nation and has guaranteed quality exports to other countries.

Typhoon Fung-Wong caused over NT$657 million in losses of agricultural crops. Pomelos, bananas, guavas, and watermelons took the hardest hit as Taiwan's supply of fresh fruits and vegetables dropped significantly. The area that sustained the most damage was southwestern Chiayi County, reporting a loss of NT$188.7 million. The typhoon also caused losses in livestock, fishery, forestry, and agricultural facilities.

Anticipating an increase in price in wholesale vegetables due to Tropical Storm Fung-Wong, consumers swarmed retail markets to buy vegetables yesterday. Retail markets had about twice the normal number of customers yesterday. The result was a 13.9% increase in wholesale vegetable prices. The price of cabbage and sponge gourd increased 45.8% and 47.6% respectively.

The Taiwanese government will implement an industry rejuvenation project, aiming to solicit over NT$1 trillion. To carry out such a project, numerous financial and banking policies will need to be relaxed. By the end of 2009, the government is set to relax 209 regulations.

Taiwan share prices dropped 4.51%, and the weighted index fell 322.72 points to end at 6,834.24, the lowest since October 2006. A total of 202 stocks closed limit-down and only 11 finished limit-up. Taiwan's financial market, along with those of other Asian countries such as Hong Kong, China, India, Japan, and Korea, experienced such significant drops because of troubles in the U.S. market. Government officials said investors need not worry, especially because of increasing economic cooperation between Taiwan and China.

Taiwan's export volume reached USD $24.3 billion last month. From this rise in exports, there was a 25.5 percent rise to China, a 24.2 percent rise to Europe, and an astonishing 114.7 percent increase to India. The Ministry of Finance released a report just yesterday stating that the cause of such an increase in demand for Taiwan exports comes from China and other emerging markets in Asia, while trade with the US continued on a decline. Despite falling demand from the US, the increasing dependence on emerging markets is projected to sustain the country's export growth, claims Hsu Ray-lin, deputy director of the ministry's Department of Statistics.