Taiwan’s GDP growth should reach over 3% this year. That’s the word from Premier Jiang Yi-huah on Tuesday, who said that figure is better than 2.5% , the average growth rate of many emerging economies.
He said many economic indices show that Taiwan’s GDP is looking good for the year.
"We are confident that GDP growth will be over 3% for Taiwan. But how far we will go will depend on the hard work of all the people of our nation," Jiang said.
The premier also said South Korea’s upcoming Free Trade Agreement (FTA) with China will be a challenge for Taiwan.
"After South Korea and China sign an FTA, customs tariffs will be reduced by an average of 10%. Our biggest competitor, South Korea, will have such a great advantage," Jiang said. "But for our products – whether you’re looking at tools, panels, etc – how many years can we manage to fall behind South Korea?"
He said that if the trade in services agreement with China can be approved and put into effect, the government is sure it can complete the trade in goods agreement by the time South Korea and China sign a FTA.
But the trade in services agreement continues to be blocked in the legislature. The premier called on businessmen to support a free market and on lawmakers to make the economy a priority over partisan politics. He said that if Taiwan’s economy breaks down, relations with China will also be much harder to manage.