TAIPEI, Taiwan (AP) - Taiwanese leaders sought to ease mounting complaints about the island's slowing economy on Sunday, the latest in a string of public apologies and promises to prop up consumer demand and investment.
Taiwan's benchmark share index has dropped 26 percent this year, with a downturn in the global economy cutting demand for the island's once booming high-tech exports. In the past week, the index has plunged 10 percent as the continued slump sparked a confidence crisis among investors.
The government recently cut its forecast for 2008 growth, predicting a 4.3 percent expansion against an estimated 4.78 percent only three months ago.
On Sunday, Premier Liu Chao-shiuan led Cabinet officials on a visit to a farm in suburban San Hsia to help promote its grapefruit, tea and pastries.
Liu told reporters that Taiwan could expect an upturn in the economy in the fourth quarter.
"The various measures we took to boost domestic demand are only now beginning to take effect," Liu said. "You will see an improvement in the fourth quarter."
Liu declined to comment on reports that the government will cut securities trading taxes.
"We will do whatever is necessary," he said.
The government recently said growth in private consumption may slow to 1.38 percent this year, down from 2.55 percent in 2007. Inflation fell slightly in August to 4.78 percent.
While campaigning for president, Ma Ying-jeou — elected in March — set an annual growth target of 6 percent and promised to cut the unemployment rate to 3 percent and double the island's per capita income to $30,000 by 2016.
Last week, Ma acknowledged Taiwan's growth had slowed and he was now aiming to reach the 6 percent growth target only toward the end of his four-year term. He apologized for the delay.
On a visit to Changhua County in central Taiwan on Saturday, Ma faced dozens of farmers displaying protest signs reading "Liar" and "Ma is Not Welcome Here."
About 40,000 supporters of the opposition Democratic Progressive Party took to the streets of Taipei last Sunday, many banging pots and pans to protest the slowing economy.
Some of Taiwan's economic problems stem from the massive exodus of local manufacturers, who have moved to the Chinese mainland to take advantage of relatively cheap labor costs there.
Despite enmity between Taiwan and China, unofficial estimates suggest at least half a million Taiwanese are living, working and spending across the Taiwan Strait.
Ma has removed a number of restrictions on cross-Strait equity and industrial investments. But he said the measures would not immediately boost slumping investment. |