The nation’s production of home appliances is expected to reach NT$50 billion (US$1.52 billion) this year, thanks to subsidies launched by the government last month to encourage consumption in the domestic market.
Total home appliance output reached NT$36.38 billion in the first nine months of the year, representing a year-on-year increase of 4.13 percent, Ministry of Economic Affairs statistics released yesterday showed.
Under the new incentive program, those purchasing energy-efficient home appliances are entitled to a cash subsidy ranging from NT$1,000 to NT$2,000 per item, depending on the type of product they buy, and the resulting heightened demand is expected to stimulate a further increase in output this year, the ministry said.
The ministry forecast that total annual output this year would be close to NT$50 billion, on a par with the NT$49.94 billion in output seen in 2012, the highest since the global financial crisis of 2009.
In 2009, home appliance production only reached NT$38.35 billion, the ministry said.
To revive sluggish domestic consumption amid the economic slowdown, the government began a four-month subsidy program on Nov. 11 on energy-saving products, including air conditioners, refrigerators, water heaters, gas stoves, television sets, washing machines and toilets.
The short-term subsidy is expected to raise GDP for this year by NT$16.1 billion, after the economy contracted by 0.63 percent in the third quarter of the year following growth of 0.57 percent in the second quarter and 4.04 percent in the first quarter
The Directorate-General of Budget, Accounting and Statistics forecast on Nov. 27 that annual GDP growth this year would be 1.06 percent, the lowest since 2009.
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