While the nation's gross domestic product is projected to be higher this year than last (3.78 percent forecast for 2015 versus 3.74 percent actual in 2014), Taiwan's economic performance may still be affected by uncertainties in the global market, Premier Mao Chi-kuo reminded Cabinet members today after hearing the National Development Council's (NDC) report on the state of the economy.
To keep Taiwan on a healthy economic trajectory, Mao said, government agencies should keep a close eye on such factors as different monetary policies among countries, deflation in Europe and Japan, economic slowdown in mainland China, geopolitical tension in the Middle East and fluctuating oil prices.
To create an ecosystem of innovation and entrepreneurship, agencies should step up efforts to transform the economy, ease laws and regulations, and promote the free flow of research, innovation, people and money. Mao added.
The current water shortage is another key variable affecting the economy, Mao said, cautioning that the recent water restrictions that began for businesses could potentially impact Taiwan's economic performance.
The NDC reported that the U.S.-led recovery among advanced nations is boosting the economy worldwide, which in turn is expected to fuel Taiwan's export momentum. Private consumption and investments are also looking up, thanks to falling oil prices, improving employment, as well as business opportunities driven by the Internet of Things and big data applications.