Focus Taiwan
Date: 06/07/2020
By: Pan Tzu-yu and Evelyn Kao

Taipei, June 7 (CNA) The Taiwan government's stimulus measures are likely to spur domestic consumption in the short term, as the country relaxes its COVID-19 restrictions, but the country's economic future will depend on the recovery of Europe and the United States from the pandemic, an economist said Sunday.

The measures include the "Triple Stimulus Voucher" program to be launched July 15, which will allow Taiwan nationals and their foreign spouses to buy NT$3,000 (US$100) worth of shopping vouchers for NT$1,000, and a domestic travel subsidy that starts July 1 in an effort to revive the tourism sector.

While those packages and others are expected to help stimulate domestic consumption in summer as some COVID-19 restrictions are eased, the boost is likely to be only temporary, said Wu Dach-rahn (吳大任), director of the Research Center for Taiwan Economic Development at National Central University.

If the COVID-19 pandemic in Europe and the U.S. does not recede in the second half of the year, and global demand remains sluggish, Taiwan's export-reliant economy and its labor market will be hard hit, which will hurt consumption growth, Wu said.    [FULL  STORY]