Economic growth will continue: Wu

Vice Premier Wu Rong-i (吳榮義) said yesterday that Taiwan's economy will continue to grow and that the economic situation will be better in the second half than in the first half of the year.

Wu made the remarks while attending a congress of the Chinese National Association of Industry and Commerce (CNAIC, 工商協進會).

CNAIC President Theodore Huang (黃茂雄) said that Taiwan's economic growth was adjusted upward to 5.71 percent from the original estimate of 4.7 percent last year, but economic growth this year was adjusted downward to 3.63 percent from the original estimate of 4.49 percent.

The downward adjustment has to do with a slower world economy, Huang said, but he also cited a tally by the Ministry of Economic Affairs showing that the ratio of domestic manufacturers' overseas production has continued to rise to an average of 38.23 percent, which he said is a sign that Taiwan is losing its competitive edge.

Addressing Huang's concerns, Wu said that world economic growth has been slower this year, dropping to an estimated 3.1 percent from last year's 3.3 percent. In the US, it dropped to 3.4 percent from an estimated 3.6 percent, and to 1.3 percent from an estimated 1.7 percent in the EU.

The situation is the same in Taiwan, Wu said, adding however that economic growth will continue, and "there is no need to be pessimistic."

Wu said that this year's build-operate-transfer projects totaled NT$100 billion (US$3.17 billion), including underground sewage-system works.

He said that only 12.5 percent of Taiwan currently has a sewage pipeline system, so there is a long way to go to match the 90 percent level in some European countries and North America.

He also remarked on the minimum tax system under a tax-reform plan and a second phase of financial reforms, saying that a more competitive financial sector will contribute to business development.

Huang for his part suggested that the government ease investment regulations, inquire about the views of businessmen while revising regulations, and speed up the pace of liberalization.