Premier Su Tseng-chang of Taiwan said on Wednesday that every resident will receive cash payments totaling about $200 this year as part of a shared economic growth initiative for the island.
The export-dependent economy, a powerhouse in the global tech industry for goods like semiconductor chips, rose at a 6.45% rate in 2021, the quickest rate since it increased by 10.25% in 2010.
The government has plans to reinvest an additional T$380 billion ($12.4 billion) in tax revenue from the previous year into the economy to help protect the island from global economic shocks, including subsidies for electricity prices, labor costs, and health insurance, even though economic growth is anticipated to slow in 2022 and 2023.
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He made no mention of the specifics of how the government will distribute the payments.
Taiwan is a significant supplier of semiconductors, which are found in everything from fighter jets to vehicles and cellphones.
Since more individuals were working from home in recent years due to the COVID-19 epidemic, its economy has been steadily expanding. This has been made possible by strong chip demand for consumer devices.
The gross domestic product (GDP) growth forecast for Taiwan’s central bank for 2022 was decreased from 3.51% in September to 2.91% in December.
It predicted that the GDP would rise by 2.53% in 2023.
In the third quarter compared to a year earlier, the GDP expanded by 4.01%.
