Premier Sean Chen said the economy has shown signs of nascent improvement as major indices suggest the domestic economy gradually leaving the doldrums.
"In September the CEPD economic monitoring indicator improved from blue (representing recession) to yellow-blue and has held steady there, signaling a slow yet stable transition to growth (represented by green)," the premier said after being briefed by the Council for Economic Planning and Development (CEPD) on the current economic situation.
The premier noted, however, that the Directorate-General of Budget, Accounting and Statistics (DGBAS) projected Taiwan's Gross Domestic Product (GDP) growth for 2012 to be 1.13 percent, citing the global economic downturn depressing exports and weak domestic demand as major reasons.
The premier directed relevant ministries to continue advancing the Economic Power-Up Plan, improve inter-ministerial communications, take the initiative to examine laws and regulations, incorporate suggestions from various sectors of society and create a sound investment environment to attract Taiwanese and foreign enterprises to invest in Taiwan and generate more employment opportunities. He concurrently asked the CEPD to supervise and track ministries' monthly progress with implementing the Power-Up Plan and publicize the results to the public.
In terms of the job market, the DGBAS reported that the number of workers on unpaid leave and the unemployment rate have risen since the end of August. The premier asked relevant government agencies to pay close attention to this situation and formulate response measures. If necessary, the vice premier will lead the Executive Yuan's employment task force to hold inter-ministry meetings to address this issue.
CEPD officials predicted that external uncertainties may continue to influence the nation's exports in 2013. For example, the Eurozone has not extricated itself from recession, and Japan's economy may decline in the first half of the year. In addition, domestic consumption could be constrained by the lukewarm stock market and lack real wage growth.
On the other hand, the private sector has continued to expand its investment in advanced manufacturing in semiconductor industry; inbound tourism has grown substantially, promoting investment in leisure-related industries; and the government has proactively attracted mainland-based Taiwanese businessmen to invest back in Taiwan.
The DGBAS predicts GDP will grow 3.15 percent in 2013, ending the recession.