Taiwan:US$29 billion to boost export- driven economy

Taiwan announced a NT$882.4 billion (US$29 billion) stimulus package on Thursday to boost its export-driven economy in the face of uncertainty from its two largest trading partners, the United States and the mainland.

Taiwan's trade-reliant economy is showing signs of recovery, but it is highly vulnerable to protectionist policies from US President, Donald Trump, and increasing competition from mainland manufacturers, as well as political tensions with Beijing.

In a bid to make the economy more balanced, Taiwan's government is looking for domestic growth drivers that dovetail with President Tsai Ing-wen's push to roll out green energy, improved utilities, better transport and telecommunications networks, and innovative technology.

The stimulus plan, which had been well flagged, is expected to focus on infrastructure, but spending will be spread over eight years.

Premier Lin Chuan told reporters the plan could add nearly NT$1 trillion to the island's gross domestic product, while conceding that growth will remain largely export driven.

"But I must admit that when economic growth is not solid, it's still necessary to take this action to bolster the economy. It's better to do this sooner rather than later", the premier added.

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