The Directorate General of Budget, Accounting and Statistics (DGBAS) has adjusted downward its forecast for 2001 GDP growth to 5.25 percent from its earlier 6.03 percent forecast, attributing the cut to a weakening global economy, declines in domestic and international stock markets and the sharp fall in manufacturing output.
Taiwan's economy slowed more than expected in the fourth quarter as electronics exports lost steam and political feuding sapped investor confidence.
The country's gross domestic product (GDP) grew by an annual 4.08 percent in the last quarter of 2000, slowing from the third quarter's 6.6 percent, according to data released yesterday DGBAS.
"The most important factors for this year's economic growth are still political issues, and political uncertainty will hurt Taiwan's economy," said Lin Chuan (林全), director of the nation's top budget and statistics agency, yesterday. "A rebound isn't expected this year," he added.
In an effort to boost the economy, the central bank has lowered interest rates to shore up the economy. It cut the benchmark rate a quarter-point to 4.375 percent on Feb. 1, citing slowing exports, lending and investment.
Additionally, the government proposes spending NT$111.5 billion (US$3.45 billion) on roads, bridges and other public works. The money would come in addition to existing budget allocations.
Lin said this year's economic growth forecast of 5.25 percent is dependent on the Legislative Yuan's approval of the additional public works spending.
If the money isn't spent, he said, growth could fall to as little as 4.75 percent to 4.85 percent.
The Philippines is working behind the scenes to enhance its defensive cooperation with Taiwan, the Washington Post said in a report published on Monday. “It would be hiding from the obvious to say that Taiwan’s security will not affect us,” Philippine Secretary of National Defense Gilbert Teodoro Jr told the paper in an interview on Thursday last week. Although there has been no formal change to the Philippines’ diplomatic stance on recognizing Taiwan, Manila is increasingly concerned about Chinese encroachment in the South China Sea, the report said. The number of Chinese vessels in the seas around the Philippines, as well as Chinese
‘A SERIOUS THREAT’: Japan has expressed grave concern over the Strait’s security over the years, which demonstrated Tokyo’s firm support for peace in the area, an official said China’s military drills around Taiwan are “incompatible” with peace and stability in the Taiwan Strait, Japanese Minister of Foreign Affairs Takeshi Iwaya said during a meeting with his Chinese counterpart Wang Yi (王毅) on Thursday. “Peace and stability across the Taiwan Strait is important for the international community, including Japan,” Iwaya told Wang during a meeting on the sidelines of the ASEAN-related Foreign Ministers’ Meetings in Kuala Lumpur. “China’s large-scale military drills around Taiwan are incompatible with this,” a statement released by the Japanese Ministry of Foreign Affairs on Thursday cited Iwaya as saying. The Foreign Ministers’ Meetings are a series of diplomatic
URBAN COMBAT: FIM-92 Stinger shoulder-fired missiles from the US made a rare public appearance during early-morning drills simulating an invasion of the Taipei MRT The ongoing Han Kuang military exercises entered their sixth day yesterday, simulating repelling enemy landings in Penghu County, setting up fortifications in Tainan, laying mines in waters in Kaohsiung and conducting urban combat drills in Taipei. At 5am in Penghu — part of the exercise’s first combat zone — participating units responded to a simulated rapid enemy landing on beaches, combining infantry as well as armored personnel. First Combat Zone Commander Chen Chun-yuan (陳俊源) led the combined armed troops utilizing a variety of weapons systems. Wang Keng-sheng (王鏗勝), the commander in charge of the Penghu Defense Command’s mechanized battalion, said he would give
‘REALISTIC’ APPROACH: The ministry said all the exercises were scenario-based and unscripted to better prepare personnel for real threats and unexpected developments The army’s 21st Artillery Command conducted a short-range air defense drill in Taoyuan yesterday as part of the Han Kuang exercises, using the indigenous Sky Sword II (陸射劍二) missile system for the first time in the exercises. The armed forces have been conducting a series of live-fire and defense drills across multiple regions, simulating responses to a full-scale assault by Chinese forces, the Ministry of National Defense said. The Sky Sword II missile system was rapidly deployed and combat-ready within 15 minutes to defend Taiwan Taoyuan International Airport in a simulated attack, the ministry said. A three-person crew completed setup and
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