At today's Cabinet meeting Premier Lin Chuan said the government must capitalize on the ongoing economic recovery at home and abroad by boosting consumer confidence, improving the investment environment and encouraging private investment.
After a briefing by the National Development Council (NDC) on the state of the economy, the premier said the government should actively expand investment in public works this year to promote forward-looking infrastructure.
The government will also create an environment conducive to industrial upgrading by promoting the "five plus two" innovative industries and pursuing regulatory reforms, the premier said. He asked the administrative team to thoroughly implement all measures to help transform the industrial structure and accelerate Taiwan's economic recovery.
The global economic situation has stabilized since the second half of 2016 while Taiwan's economy has also been on the upswing. International and local institutions are forecasting that the domestic economy will grow faster this year than it did last year, he said.
The premier also directed government agencies to prepare response strategies for the possible impacts of the new U.S. administration's "made in America" policy on domestic businesses, and help Taiwanese companies adjust their global deployment strategies accordingly.
According to the NDC, the government is investing in the "five plus two" innovative industries to build on Taiwan's advantages in the semiconductor industry. Investments for forward-looking infrastructure will cover green energy, digital technology, water resources, railroad tracks, and rural and urban infrastructure. By improving the investment and entrepreneurship environment, Taiwan hopes to raise its economic growth rate to 2.0 to 2.5 percent in 2017.
The International Monetary Fund is projecting global growth to improve from 3.1 percent in 2016 to 3.4 percent in 2017 on the backs of emerging and developing economies, the NDC said. Taiwan must still keep a close eye on uncertainties regarding U.S. trade policy, the aftermath of a "hard Brexit" from the European Union, and rising anti-establishment movements throughout Europe.