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Taiwan doubles down on stimulus to halt recession with tourist handouts, cash for citizens
- Taiwan’s economy fell into recession after its gross domestic product (GDP) fell by 3.02 per cent, year on year, in the first quarter
- Taipei has rolled out a series of stimulus, including a lucky draw to give away spending vouchers and stored-value cards to inbound tourists
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Taiwan is doubling down on stimulus this year, from the re-emerging tourism sector to the bank accounts of its citizens, to help steer the US$830 billion economy out of recession ahead of a presidential race in January.
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One of the world’s most important exporters of hi-tech equipment, Taiwan dropped into recession following a decline in demand for the island’s signature PCs, phones and semiconductor chips, with its gross domestic product (GDP) falling by 3.02 per cent, year on year, in the first quarter.
“Taiwan’s economic performance this year must rely on the domestic demand market, so the government’s stimulus policies are targeted at projects that boost domestic consumption,” said Darson Chiu, a research fellow with the Taiwan Institute of Economic Research in Taipei.
Among the bigger handouts, Taiwan launched a programme on Monday to give away spending vouchers and stored-value cards to inbound tourists via a lucky draw.
Half a million inbound tourists will be eligible to claim the money and receive the equivalent of NT$5,000 (US$163) each.
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