Though the first-quarter economic growth estimate has been revised downward, the Executive Yuan's plan to increase the minimum monthly wage to NT$19,047 (US$643) retroactive to April 1, 2013 will not be changed, Premier Jiang Yi-huah remarked today at a Labor Day awards ceremony in honor of model workers from across the nation.
During the ceremony, the premier sincerely expressed his gratitude and respect for the nation's workers. "The contributions and sacrifices you have made while standing fast at your posts have made our national development and economic success possible," he said. Jiang extended congratulations to the 51 model workers being honored, saying that their performance "is the best example for other workers to follow."
This morning, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported its preliminary estimate of the first season's economic growth rate: a mere 1.54 percent, less than half the 3.26 percent growth predicted in February. This caused grave concern among many workers about whether the government would backpedal on its promise to raise the monthly minimum wage.
The premier said he discussed the issue with relevant agencies as soon as the news broke and immediately decided the policy should remain unchanged.
Jiang noted that a number of neighboring countries, such as South Korea and Singapore, have revised their national forecasts downward as well, indicating the world economy has yet to fully recover from the impact of the European sovereign-debt crisis. "For Taiwan, one factor is lower-than-expected export growth, and another is a substantial decrease in private consumption," he said.
"However, the Executive Yuan will maintain the wage increase it decided upon in April as workers have contributed so much to the country," he assured.
The premier also noted that although the latest GDP figures are disappointing, other economic indicators have shown signs of recovery. Growth in first-quarter imports of capital equipment is up a remarkable 17 percent year-on-year, and March exports were the highest they have been in years. Meanwhile, the consumer confidence index has attained its highest level since last spring, showing that the Taiwanese public is growing positive about the economic outlook.
"These figures show that the economy is turning around. What our country needs even more is confidence," the premier said. "Private consumption and economic growth will only take off if our entrepreneurs and laborers are confident. I hope everyone will continue working together and supporting the Executive Yuan's economic stimulus plans. As long as we are united, we can overcome any challenge and create a new era of economic prosperity."