Taiwan GDP growth to slow to less than 3pct in 2019

14-Jan-2019 Intellasia | Digi Times | 6:00 AM Print This Post

Taiwan’s gross domestic product (GDP) growth will likely slow to less than 3 percent in 2019, a performance lower than 2018, requiring major government efforts to expand domestic demand and increase public investments amid export declines in the year, according to the National Development Council (NDC).

Domestic and international economic institutes have projected Taiwan’s GDP growth at 2.15-2.41 percent and export expansion at 2.95-3.55 percent for 2019, all lower than recorded in 2018.

MH Wu, director of NDC’s economic development department, said Taiwan’s export growth in 2019 will suffer from a spate of adverse factors including US-China trade conflicts, geopolitics and international oil price fluctuations. Wu said domestic demand will be the major driver for the country’s economic growth in 2019.

Taiwan’s leading economic indexes issued by the NDC has fallen for six consecutive months, indicating the country’s economic development in the next few months is losing steam.

To counter, the government is stepping up efforts to stimulate domestic consumer spending and boost public investment to revitalise economic growth momentum. The government will offer incentives to boost consumer spending and provide multiple spending choices, Wu said, adding that the government will also step up implementing 100 urban renewal projects valued at NT$105.5 billion (US$3.41 billion) in 2019.

In addition, the cabinet has approved the implementation of NT$392.7 billion worth of public infrastructure projects in 2019, up 7.7 percent on year. It has also readied a spate of tax incentives to encourage overseas Taiwan investors to return home for investment, effective on January 1, 2019.

Moreover, the ministries of economic affairs and finance are also mapping out new incentives to encourage purchases of smart machines and 5G network equipment by domestic enterprises to accelerate industrial upgrades and transformations.



Category: Taiwan

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