Taiwan plans $2 billion package to soften coronavirus hit to economy

14-Feb-2020 Intellasia | Reuters | 6:02 AM Print This Post

Taiwan’s cabinet proposed on Thursday a T$60 billion ($2 billion) package to help the economy deal with the impact of the coronavirus.

Export-reliant Taiwan lowered its 2020 economic growth estimate on Wednesday, as the coronavirus outbreak threatens to hit its economy that is a key part of the global electronics supply chain.

Taiwan has reported only 18 cases of the virus and no deaths, but has largely suspended travel and tourism links with its main trading partner China to help curb its spread. China has reported more than 1,300 deaths.

Taiwan’s cabinet has proposed in the special budget T$14.23 billion for the transportation and tourism industries, including subsidies for tour agencies whose businesses have been hit hard, and tax cuts for tour bus drivers.

The special budget also included loans to small business owners.

Tourism accounts for only 2 percent of Taiwan’s GDP, Fitch Ratings said in report earlier this week, adding that Taiwanese banks are better positioned to navigate the economic headwinds from the coronavirus than those from the 2002-2003 SARS outbreak, which killed 37 people on the island.

“The spread of the virus in mainland China is set to have some impact on Taiwan industries,” National Development Council deputy research director Wu Ming-huei told a news conference, adding that the impact would not be as serious as that from SARS.

https://sg.news.yahoo.com/taiwan-plans-2 billion-special-034551331.html

 


Category: Taiwan

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