Govt scheme helps ease drop of consumption
Updated: 2009-04-24 05:43
(HK Edition)
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TAIPEI: The decline in private consumption has showed signs of easing in the first quarter, due in part to a government shopping voucher program which encourages people to boost their spending, Department of Statistics Head Huang Chi-shih said yesterday.
Despite global recession, the drop in sales of the island's retail trade, food and beverage services sectors has slowed, reflecting the positive impact of the government aid scheme, Huang said.
Latest government data show that total sales generated by the three sectors in the first quarter amounted to NT$877.6 billion ($25.9 billion), up marginally by 0.28 percent from the fourth quarter last year, but down by 4.46 percent from the same period last year.
The year-on-year 4.6 percent drop in sales in the first quarter marks a significant improvement from the 6.47 percent drop in sales that the three sectors suffered in the fourth quarter last year.
First quarter sales of general merchandise retailers - including department stores, supermarkets, chain convenience stores and hypermarkets - totaled NT$213.7 billion, a slight 0.88 percent increase from the previous quarter's level.
Huang said some NT$66.7 billion worth of shopping vouchers were issued to the public between Jan 18 until the end of March.
The vouchers were issued to the public through the wholesale trade, retail trade and food and beverage service sectors.
Of the total amount, NT$30.4 billion, or 46 percent, were handed to general merchandise retailers, Huang said.
The vouchers are being given out until April 30 as part of an economic stimulus package to boost consumer spending and economic growth in light of the current economic downturn.
All Taiwan residents - with the exception of those living abroad without identity cards, household registration or residency rights - and their foreign spouses are eligible to each receive NT$3,600 in vouchers.
Holders of the vouchers should exchange them for goods or services by Sept 30 this year.
Government data show that as of April 20, more than NT$65.53 billion, or 78.26 percent, of the total of NT$83.73 billion vouchers issued had been used by consumers and cashed by the businesses which received them.
The largest amount of vouchers used for purchases in a single day - NT$8.16 billion - was recorded on Feb 3, the second working day after the Chinese New Year holiday, according to Bank of Taiwan.
Between NT$2 billion and NT$3 billion worth of goods and services were purchased daily, with the use of the shopping vouchers, during the week after the New Year holidays, the bank said.
However, the daily amount has decreased significantly to between NT$200 million and NT$500 million in recent days, probably because most consumers have already spent their vouchers, the bank said.
While the shopping voucher program might have helped slow down the decline in private consumption, its effect in terms of encouraging consumers to spend more than the NT$3,600 in vouchers remains doubtful.
China Daily/CNA
(HK Edition 04/24/2009 page3)