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Economic Daily News: Leaving gloomy 2013 behind

Economic Daily News: Leaving gloomy 2013 behind

Looking back at 2013, Taiwan's economic performance has been much worse than expected. The projected 1.74 percent growth for this year is only slightly higher than the 1.36 percent recorded in 2012 and the lowest among Asia's four little dragons. It appears low growth has become the norm for Taiwan's economy. The information and communications industry, which is the backbone of Taiwan's exports, has been losing its luster. Despite progress in cross-Taiwan Strait economic and trade relations, competition between the industry sectors of the two sides is intensifying. The government's efforts to promote economic reforms, meanwhile, have stalled due to political disputes. All these factors indicate that Taiwan's economy is being caught in a new crisis due to declining industrial competitiveness and growing government ineffectiveness. In 2014, the economy is expected to face more challenges amid uncertainties such as the possible end of quantitative easing by the U.S. Federal Reserve. The government must recognize the current crisis and identify the risks that are likely to occur in the future and guide the private sector toward positive change. The government needs to take effective measures to help the information and communications sector transform and upgrade itself. It should also encourage the private sector to invest excess capital in public construction and future industrial development. On cross-strait relations, the government must realize that the mounting opposition in Taiwan's society to the cross-strait service trade agreement reflects people's anxiety about Taiwan's policy toward China. Taiwan's government should act to consolidate people's confidence instead of rushing to push through cross-strait liberalization programs. (Editorial abstract -- Dec. 30, 2013) (By Y.F. Low)


Updated : 2021-07-25 18:50 GMT+08:00