ROC President Ma Ying-jeou said the government is pulling out all stops to help Taiwan weather the effects of the global economic downturn triggered by the European sovereign debt crisis.
“A comprehensive stimulus package aimed at boosting the local economy and public confidence is in the works,” Ma said Nov. 30. “We have every belief Taiwan will come through unscathed given our successful experience during the 2009 financial tsunami.”
The president made the remarks during a forum organized by local broadsheet United Daily News, where Peter A. Diamond—one of three 2010 Nobel Prize laureates in economic sciences—was the invited speaker.
Diamond’s address, which touched on a variety of trends and factors shaping the global system, also included advice for Taiwan on how it can pursue sound policies amid conditions of increasing uncertainty.
Financial reforms and increased public spending, especially on infrastructure projects, are the best strategies to drive long-term growth, Diamond said, adding that Taiwan deserves praise for the various measures it adopted during the Great Recession.
In response, Ma said Taiwan is at a critical juncture with today’s choices determining whether the economy heads toward healthy recovery or instability.
Since taking office in May 2008, the president has made improving Taiwan’s economy a top priority. This has seen the budget deficit as a percentage of gross domestic product drop from 3.5 percent in 2009 to 2.5 percent this year, with 1.6 percent forecast for 2012. The level of public borrowings also decreased 16.6 percent in 2011, buoying hopes that a further reduction of 37 percent will be achieved next year.
Although these healthy fundamentals have helped Taiwan emerge as an important market in Asia, Ma said, the country is still faced with numerous challenges in navigating current concerns.
“We will keep a close eye on the European situation and are committed to undertaking all necessary steps in response to possible declines in exports.” (JSM)
Write to Meg Chang at meg.chang@mail.gio.gov.tw