Premier Jiang Yi-huah today expressed optimism about Taiwan's economic prospects and said the nation's gross domestic product growth rate is expected to surpass 3 percent in 2014, which would be the best performance in three years.
The premier made these remarks after being briefed by the National Development Council (NDC) on the ROC's economic situation.
This year, Taiwan has benefited from global economic recovery, as both domestic and foreign demand has increased. However, this upturn may be hindered by factors such as the heightened geopolitical risks in the Middle East and Ukraine and likely interest-hike by the U.S. Federal Reserve, which could cause upheavals in global energy and food supplies as well as financial markets. Jiang therefore enjoined various ministries to closely monitor the situation and take timely commensurate measures when necessary.
The premier pointed out that although the nation's overall economy looks bright, Taiwan's ranking in the Global Competitiveness Report 2013-2014, released by the World Economic Forum yesterday, was two places lower than the previous year. The factors causing this regression must be investigated, he warned.
In order to bolster the nation's growth momentum, Jiang directed related agencies to take proactive measures oriented towards creativity and forward-looking policies, expedite industrial upgrading and transformation, and encourage youths to innovate and start new businesses in order to change the nation's contract manufacturing-centered export model.
With regard to salary increases for workers, the premier asked the Ministry of Economic Affairs, Ministry of Finance and other relevant agencies to brainstorm about systemic or policy means to incentivize enterprises to use their profits to reimburse employees or expand investment so that the fruits of economic growth can be shared through increased wages and reasonable income distribution.
Jiang also noted that although the nation's consumer price index is quite stable, rising food costs have impacted low-income families. Aside from adjusting the minimum wage, the government will continue to monitor the situation and strive to stabilize commodity prices.
The NDC stated that the upward adjustment in growth is due to increases in exports, private investment and consumption, the annual growth rates of which are projected to reach 4.53 percent, 4.83 percent and 2.62 percent, respectively. The estimated annual consumption growth rate would be the highest since 2012.
The unemployment rate for the first seven months of this year (January-July) was 3.89 percent, the lowest in the past six years, and the circumstances of young people and those with tertiary education are gradually improving. The annual real average salary growth rate is projected to be 2.86 percent, the highest since 2011.