Vice President Lai Qingde gave a speech at the '2023 World Economic Forum Winter Session' yesterday (9th) and presented four major challenges and solutions. He said that in response to China's economic downturn, industrial chain restructuring and climate change, which are the four major challenges of strengthening the global currency this year, Taiwan must respond to the emergency to stabilize the exchange rate, and the central bank will also accept it. . Moderate monetary tightening so that businesses are not exposed to “internal and external pressures”.
He said that governments, central banks or relevant ministries would certainly act correctly on exchange rates, interest rates and inflation in response to changes in the international situation.
Lai Qingde noted that the global economy will face four major challenges this year. First, most central banks will continue to pursue monetary tightening, which could slow global economic growth and affect financial stability. For a long time, the world has adopted monetary and credit easing policies to overcome the financial crisis, which has resulted in price increases in all countries along with geopolitical changes. Under these circumstances, the United States has continuously raised interest rates, affecting the slowdown in the growth of the world's major economies and increasing the cost of debt in developing countries, which has lowered the global economy. about meeting.
To resolve the situation, he said, Taiwan should first normalize its exchange rate and the central bank should also pursue a stable and moderate austerity policy. In other words, the government, central bank, or related ministries must respond appropriately to changes in international circumstances, such as exchange rates, interest rates, and inflation.
The second problem is the epidemic situation in mainland China. Even if they are dynamically cleared or completely unlocked, they have a huge impact on productivity. In addition, the real estate index is not very good and the US high-tech control is expected to not do well for the mainland economy this year. , affects the development of the world economy, and Taiwan is no exception. In this situation, Taiwan mainly takes measures to increase public expenditure and compensate for investment in order to promote Taiwan's domestic market and avoid impact on the economy.
The third challenge of the global economy comes from the restructuring of industrial chains. At the same time, global industrial chains are being reorganized into shorter or regional chains. In addition to continuously promoting investment in Taiwan, the government is continuously promoting the New Southern Policy by signing investment guarantee agreements with the Philippines, Vietnam and India. We will also continue to promote the "Taiwan-U.S. Technical Cooperation and Investment Framework" (TTIC) and the 21st Century Trade Initiative-Taiwan negotiations to further strengthen economic and trade ties with the United States.
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