Premier Sean Chen (陳冲) yesterday instructed Cabinet officials to closely monitor the evolution of the European debt crisis and follow through with short-term and medium-to-long-term strategies to rebalance the economy into one that could adapt to changes in the international economic situation, an official said yesterday.
Minister Without Portfolio Kuan Chung-ming (管中閔) and Executive Yuan spokesperson Hu Yu-wei (胡幼偉) called a press conference last night to brief the media about a meeting presided over by Chen earlier yesterday about the impact of the eurozone debt crisis on Taiwan’s economy.
A decline in the first quarter of this year was partly caused by sluggish global demand amid the eurozone debt crisis, said Kuan, who leads a Cabinet-level task force considering policy responses to the global economic situation.
Despite that, Kuan said the Cabinet remains confident of keeping the annual growth at about 3 percent — 3.03 percent, which was recently revised down from the previous forecast of 3.83 percent growth by the government’s statistics agency — unless the eurozone debt crisis degenerates into an even worse situation.
For the moment, the impact of the debt crisis is limited in the industrial sector, but Europe is China’s largest export market and many local businesses use China as a production base for onward export. The impact on the financial sector is minimal because overseas operations of locally owned banks in Europe are limited, Kuan said.
Kuan said the government would pay close attention to the evolving situation in Europe, including France’s parliamentary election on Sunday and June 17, and the general election in Greece on June 17, after which it would be clearer whether Europe would continue with austerity measures or replace them with growth measures.
The government would continue to implement seven short-term measures and five medium-and-long-term strategies to facilitate an economic recovery, Kuan said.
Some new measures pertaining to the relaxation of rules to attract foreign talent and overseas investments are also being formulated, Kuan said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
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