Premier Lin Chuan says the government is closely monitoring the impact of the UK’s vote to leave the European Union on Taiwan’s financial market. Lin was speaking at the legislature Friday.
Lin said the victory for Brexit will have an impact on the global economy, including Taiwan.
"The impact will have a domino effect on the global economy," said Lin.
"Of course, it will also affect international trade and have a practical impact on Taiwan, though not a major one by [our] estimate. The impact is mostly psychological and it will affect the financial market."
Shares in Taiwan dropped 2.3% Friday after Britain voted to leave the EU. Lin said the government could consider activating the national stabilization fund to east public anxiety though it would be better not to do so.
Lin also said it will be a formidable challenge for the government to keep Taiwan’s GDP growth above 1% this year.