Taiwan gov't to distribute shopping coupons to boost economy

Liu Chao-shiuan said the coupons, which would be redeemable in retail shops, restaurants and supermarkets through to the end of 2009, are intended to boost Taiwanese economic activity during the global slowdown.

"The worldwide economy will probably be in a downturn for a while, so the coupons are necessary to support us during that time," he told a press conference in Taipei.

The measure has been passed by Liu's Cabinet but still needs legislative approval.

It mandates the distribution of 3,600 New Taiwan dollars (US$107) worth of coupons to all Taiwanese citizens and would cost almost $2.5 billion in total.

During election campaigning earlier this year, President Ma Ying-jeou promised to boost the island's economy after several years of relatively slow growth under predecessor Chen Shui-bian.

But the worldwide economic downturn has undermined the island's growth prospects, particularly by reducing the appetite in industrialized countries like the United States for Taiwan's high tech exports.

Taiwanese economic institutions still foresee a growth rate of 3-4 percent for 2009, but earlier this week the U.K.-based Economist Intelligence Unit predicted economic growth will fall to 1.3 percent, which would be the lowest in eight years.

Growth in 2008 is expected between 3.5 percent and 4.8 percent. It was 5.7 percent in 2007.

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