In spite of lower-than-expected growth in the first quarter, the government has no plan to reverse the increases in the minimum wage made at the beginning of last month, Premier Jiang Yi-huah (江宜樺) said yesterday.
“We won’t change the stated policy that has raised the minimum wage” even after the first-quarter GDP data is finalized this month, Jiang said.
He decided on April 2 to increase the minimum wage by 1.42 percent, from NT$18,780 to NT$19,047 effective April 1, after confirming with the Directorate-Generate of Budget, Accounting and Statistics (DGBAS) that first-quarter GDP growth had exceeded 3 percent.
A GDP growth of more than 3 percent for two quarters in a row or an unemployment rate of less than 4 percent for two consecutive months were the conditions set by the Cabinet to increase the monthly minimum wage.
GDP growth in the fourth quarter of last year was 3.72 percent.
The DGBAS yesterday said the advance estimate of first-quarter GDP could be lower than the estimate of 3.26 percent made in February, falling to 1.54 percent because of weak exports.
Jiang said other countries such as Singapore and South Korea had also revised their first-quarter GDP forecasts downwards.
That meant that the European debt crisis was still hurting the world economy, he said.
The adjustment came because exports were not as good as expected and domestic private consumption contributed less to economic growth than expected, Jiang said.
However, the Executive Yuan had decided to maintain the wage increase to “reward” workers who have contributed so much to the country for years, he said.
Other economic indicators have showed signs of recovery, he said, such as the latest consumer confidence index, which increased 1.28 points to 77.29 last month, from 76.01 in March. That showed that most people in Taiwan had a positive outlook on the economy.
The 17 percent rebound in imports of capital equipment in the first quarter and exports in March that hit a 20-month high were also positive signs, he said.
Those figures showed that the economy is turning around, Jiang said, adding the public should have confidence to keep the momentum in domestic consumption going.
The Central Weather Administration (CWA) yesterday said it expected to issue a sea warning for Typhoon Fung-Wong tomorrow, which it said would possibly make landfall near central Taiwan. As of 2am yesterday, Fung-Wong was about 1,760km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, moving west-northwest at 26kph. It is forecast to reach Luzon in the northern Philippines by tomorrow, the CWA said. After entering the South China Sea, Typhoon Fung-Wong is likely to turn northward toward Taiwan, CWA forecaster Chang Chun-yao (張峻堯) said, adding that it would likely make landfall near central Taiwan. The CWA expects to issue a land
Taiwan’s exports soared to an all-time high of US$61.8 billion last month, surging 49.7 percent from a year earlier, as the global frenzy for artificial intelligence (AI) applications and new consumer electronics powered shipments of high-tech goods, the Ministry of Finance said yesterday. It was the first time exports had exceeded the US$60 billion mark, fueled by the global boom in AI development that has significantly boosted Taiwanese companies across the international supply chain, Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a media briefing. “There is a consensus among major AI players that the upcycle is still in its early stage,”
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
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