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Taiwan hands out $2.5 billion in spending vouchers
AP - Sunday, January 18
TAIPEI, Taiwan - Taiwan's government began distributing $2.5 billion worth of spending vouchers to its citizens Sunday in a bid to spur buying on the island and prop up its slowing economy.
The global economic slump has undermined Taiwan's economy with demand for the island's high-tech exports dropping sharply in industrialized countries such as the United States.
Long lines formed at dispersal centers where people were handed a stack of vouchers valued at 3,600 New Taiwan dollars ($108). The government is giving away a total of NT$80 billion ($2.5 billion) worth of vouchers to each of the island's 23 million people.
Officials said the move was expected to add 0.6 percentage point to the GDP growth rate when the voucher plan was first unveiled in November.
Vice President Vincent Siew said the impact of the move on the domestic economy may not be as great with the world economic situation deteriorating. "We would be happy if the extra retail sales generated could slow a steeper decline of the economy," Siew said.
In November, Taiwan's government projected 2.1 percent economic growth for 2009. Several research groups say, however, the economy could contract as much as 2.0 percent this year.
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