Shopping Is Taiwan's Solution To Economic Slowdown

Taipei, Taiwan (AHN) - In the face of slowing economy and the prospect of global recession, the government of Taiwan is thinking of a novel way to encourage citizens to spend more. Give them shopping money to splurge on food, clothing and electronic gadgets.

And the government is willing to pay the tab of up to $2.12 billion for this plan.

If the plan is approved, an estimated 6.7 Taiwanese families will be given around $302.5 or 10,000 Taiwan dollars.

Prime Minister Liu Chao-shiuan said the plan was similar to the initiative in Japan in 1999 which boosted domestic consumption when the Japanese economy faced a recession.

Liu met with cabinet members over the weekend to discuss the plan in the hope of preventing the economy from going into recession.

But the plan drafted by the Council for Economic Planning and Development, the island's top economic planning body, the wealthiest 12 percent families in the region will be excluded from the shopping coupon.

Economic data from Taiwan shows a continued slowdown with index in September of leading indicators fell by 0.3 percent from August.

The export sector, the key mover of Taiwan's economy, slid by 8.3 percent in October as demand for electronic and precision products slumps because of slowdown in global economy.