Taiwan announces huge stimulus package in face of uncertain times

Taiwan announced a NT$882.4 billion (HK$225 billion) stimulus package yesterday to boost its export-driven economy in the face of uncertainty from its two biggest trading partners, the United States and mainland China.

Taiwan’s trade-reliant economy is showing signs of recovery, but is highly vulnerable to protectionist policies from US President Donald Trump and rising competition from mainland manufacturers, as well as increasing political tensions with Beijing.

In a bid to make the economy more balanced, Taiwan’s government is looking for domestic growth drivers that dovetail with President Tsai Ing-wen’s push to roll out green energy, improved utilities, better transport and telecommunications networks, and innovative technology. The stimulus package is expected to focus on infrastructure,with spending spread out over eight years.

Taiwanese Premier Lin Chuan said the plan could add nearly NT$1 trillion to the island’s gross domestic product (GDP), while conceding that growth would remain largely export-driven.

“But I must admit that when economic growth is not solid, it’s still necessary to take this action to bolster the economy,” the premier said.