Income growth lags behind pace of GDP

Yingrid Ho, TAIPEI, Taiwan, The China Post

Economic growth reached 7.17 percent for the first half of this year, however, the Directorate General of Budget Accounting and Statistics (DGBAS) says most salaried people have not seen the economic progress. In terms of the averaged household income, the figure only sees an increase of NT$89 in the first half; average payrolls for employees increased NT$1,008 year on year, or a monthly NT$168, says DGBAS.

Last year, economic growth was 3.31 percent, and Taiwan’s gross domestic product rose from US$12,916 to US$13,156 last year. However, the monthly income of employees does not reflect such a growing pace. DGBAS predicts that economic growth for 2004 would reach 5.87 percent. Based on its forecast of 5.87 percent on the 2004 economic growth, DGBAS says a reasonable GNP this year should be US$13.925.