National Development Council Minister Chen Mei-ling has warned that Taiwan will face even greater economic losses if the outbreak of COVID-19 does not lessen by the end of March.
Chen told lawmakers Thursday that the epidemic will take a direct hit on consumer confidence and affect domestic demand. She said production lines in the manufacturing sector will grind to a halt, supply chains will be cut, and exports will fall.
She warned that with fewer export orders, the private sector will have trouble managing cash flows. She said this will be a particular problem for small- and medium-sized enterprises, which account for the majority of Taiwan’s local industry.
Chen said given the many uncertainties surrounding the outbreak, the virus’ economic impact on Taiwan should not be treated lightly. She said that if the epidemic continues until the end of March, Taiwan’s economic growth will fall between 0.35 and 0.5 percentage points.