The Directorate-General of Budget, Accounting and Statistics last week raised its growth forecast for the nation’s consumer price index this year to 2.03 percent, factoring in an average 11 percent increase in electricity rates from this month. The new forecast followed the central bank’s upgrading of its inflation estimate to 2.16 percent from 1.89 percent in light of the government’s across-the-board electricity rate increases.
As a result, consumer price index growth would exceed 2 percent for three consecutive years after inflation grew 2.95 percent in 2022 and 2.49 percent last year — a rarely seen phenomenon over the past 30 years. Central bank Governor Yang Chin-long (楊金龍) had mentioned several times that inflation might undergo a structural upward shift, with the long-term average inflation at about 1.5 to 2 percent compared with about 1 percent in the past, due to factors such as a green energy transition, industrial transformation and labor shortages.
As consumer prices are tilted toward the high side, most wage earners are under growing pressure from a substantial increase in their living expenses. A recent survey by online job bank yes123 on the financial health of workers aged 39 and younger showed that 37 percent of those surveyed said their finances were balanced and 23.4 percent considered their income sufficient to cover expenses, while nearly 40 percent said they were unable to make ends meet every month. The survey indicated a worsening trend for young workers, as 38.1 percent of people last year said they did not have enough income to cover their monthly expenses, up from 36.3 percent a year earlier.
Meanwhile, about 73.3 percent of young workers are in debt, the survey found, with mortgages, student credit card debt, and bank and auto loans. Some are in debt as a result of supporting family or friends, or from investment losses or business failures. On average, young workers said they could live off their savings for up to two-and-a-half months should they unexpectedly lose their job, but 34.6 percent said they could barely survive one to two days if unemployed.
Despite the end of the COVID-19 pandemic, countries are still feeling the effects of higher inflation due to Russia’s invasion of Ukraine, with people facing rising food, rent and electricity costs. While the monthly minimum wage in Taiwan has increased from NT$20,008 to NT$27,470 over the past eight years, young workers are still struggling to save money while maintaining the quality of life their jobs afford.
Meanwhile, this year’s World Happiness Report released on March 20 shows that Taiwan remains Asia’s second-happiest country after Singapore, although its global ranking fell to 31st from 25th last year. Taiwanese aged 30 and younger are the 25th-happiest in the world and the most happy in East Asia, surpassing that of many advanced countries, including the UK at 32nd, Germany at 47th, France at 48th, South Korea at 52nd, Singapore at 54th, Canada at 58th, the US at 62nd and Japan at 73th, the annual UN-backed report showed.
Numbers aside, do Taiwanese youth experience the same level of happiness as suggested in the UN report, given that inflation continues to take a large bite out of their wages? After all, Taiwan should not be complacent about the report’s high ranking, as the rallies of local equities and GDP growth do not translate into an increase in people’s happiness. Conversely, there is much to think about as to why older adults in Taiwan ranked lower at 34th in Asia, behind Singapore at 26th and even China at 30th.
Shortly after Hu Jintao (胡錦濤) stepped down as general secretary of the Chinese Communist Party (CCP) in 2012, his successor, Xi Jinping (習近平), articulated the “Chinese Dream,” which aims to rejuvenate the nation and restore its historical glory. While defense analysts and media often focus on China’s potential conflict with Taiwan, achieving “rejuvenation” would require Beijing to engage in at least six different conflicts with at least eight countries. These include territories ranging from the South China Sea and East China Sea to Inner Asia, the Himalayas and lands lost to Russia. Conflicts would involve Taiwan, the Philippines, Vietnam, Malaysia,
The Sino-Indian border dispute remains one of the most complex and enduring border issues in the world. Unlike China’s borders with Russia and Vietnam, which have seen conflicts, but eventually led to settled agreements, the border with India, particularly the region of Arunachal Pradesh, remains a point of contention. This op-ed explores the historical and geopolitical nuances that contribute to this unresolved border dispute. The crux of the Sino-Indian border dispute lies in the differing interpretations of historical boundaries. The McMahon Line, established by the 1914 Simla Convention, was accepted by British India and Tibet, but never recognized by China, which
The Chinese Communist Party (CCP) continues to bully Taiwan by conducting military drills extremely close to Taiwan in late May 2024 and announcing a legal opinion in June on how they would treat “Taiwan Independence diehards” according to the PRC’s Criminal Code. This article will describe how China’s Anaconda Strategy of psychological and legal asphyxiation is employed. The CCP’s People’s Liberation Army (PLA) and Chinese Coast Guard (CCG) conducted a “punishment military exercise” against Taiwan called “Joint Sword 2024A” from 23-24 May 2024, just three days after President William Lai (賴清德) of the Democratic Progressive Party (DPP) was sworn in and
In a recent interview with the Malaysian Chinese-language newspaper Sin Chew Daily, former president Ma Ying-jeou (馬英九) called President William Lai (賴清德) “naive.” As always with Ma, one must first deconstruct what he is saying to fully understand the parallel universe he insists on defending. Who is being “naive,” Lai or Ma? The quickest way is to confront Ma with a series of pointed questions that force him to take clear stands on the complex issues involved and prevent him from his usual ramblings. Regarding China and Taiwan, the media should first begin with questions like these: “Did the Chinese Nationalist Party (KMT)