Quick-fix moves draw fire for inattention towards fundamentals
With the seriousness of the island's economic woes demonstrated both by Taipei's sagging stock market and Monday's forecast that economic growth will fall below 5 per cent for both last year and this, Taiwan policy-makers are expected to prescribe a wide range of remedies in the run-up to next week's Lunar New Year holiday.
The official Directorate-General for Budget, Accounting and Statistics on Monday said inflation-adjusted expansion in gross domestic product (GDP) rose only 4.83 per cent and forecast real GDP growth of only 4.74 per cent this year.
Its decision to issue the most downbeat forecasts of the island's main think-tanks had its positive side in terms of facing reality. Whether such realism will be manifested by other departments remains to be seen.
Of particular interest is today's scheduled announcement by the Ministry of Finance of proposals to strengthen capital markets.
The ministry, which has issued a series of 'beneficial' moves in step with the erosion of the Taiwan Securities Index in recent months, issued another three short-term measures on Sunday, including looser restrictions on cash and securities loans, publication of real-time over-the-counter market data, and a vow to crackdown on rumour-mongering in the bourse.
The expectations of leading analysts cannot be described as optimistic.