Taiwan’s government said on Wednesday it will give a cash gift to every citizen this year to share the success of the island’s economic growth.
Each citizen will receive T$6,000 ($195.61), Premier Su Tseng-chang said, on the condition of approval from the the ruling Democratic Progressive Party.
The export-reliant economy, a global tech powerhouse for products including semiconductor chips, grew 6.45% in 2021, the fastest rate since it expanded 10.25% in 2010.
“The fruit of economic achievements will be shared by all citizens, from young to old,” Su told reporters.
“We wish to give all citizens a New Year blessing after the beginning of the Lunar New Year.”
While economic growth is expected to slow in 2023, the government has made plans to plough an extra T$380 billion ($12.4 billion) in tax revenue from last year back into the economy to help protect the island from global economic shocks, including subsidies for electricity prices and labour and health insurance.
Taiwan is a major producer of semiconductors used in everything from cars and smartphones to fighter jets. Its economy continued to grow during the Covid-19 pandemic in recent years helped by strong chip demand for consumer electronics as more people worked from home.
Taiwan’s central bank in December cut its 2022 estimate for gross domestic product (GDP) growth to 2.91% from its previous forecast of 3.51% in September.
For 2023, it projected GDP would grow 2.53%. The economy grew 4.01% in the third quarter from a year earlier.