Taiwan finance minister seeks fiscal stimulus for 2016 to support growth

[TAIPEI] Taiwan's finance minister said on Thursday that government investment spending should increase next year as part of an expansionary fiscal policy to boost economic growth.

"In the total budget for next year, the ministry will advocate for an increase in public investment and related investment to adopt an expansionary fiscal policy to increase the economic growth momentum," Chang Sheng-ford told reporters in a briefing.

The government is in the process of planning its 2016 budget, which has to be submitted to parliament for review.

Taiwan's export-reliant economy has remained relatively resilient in the face of a global slowdown, thanks to demand from the United States for technology products comprising parts made by Taiwanese companies.

However, the outlook remains uncertain as Europe's recovery is still sluggish and growth in China and much of the rest of Asia has slackened.

In the first quarter, Taiwan's economy grew 3.37 per cent, its slowest year-on-year quarterly pace since the third quarter of 2013, in part due to weak government consumption.

Taiwan's central bank, which meets later this month for its quarterly policy review, is widely expected to keep rates on hold - a steady policy stance stretching back to July 2011.

REUTERS