It's a perfect storm.
High inflation rates curbing spending (and real wages) in the early part of the year, followed by crisis in the financial sectors, and now the manufacturing export factor has taken the unavoidable hit.
Given that GDP is primarily made up of (1) Consumption - squeezed by inflation (2) Investments - Throttled by the credit crunch (3) Net Exports - Lack of demand from overseas, it's clear that things are looking pretty dismal. If nothing else changes, the government only has two options - Massive public spending to bolster GDP, or allow the GDP to take a hit. Either way, it has to be some fairly big move.
Taiwan's come up with a consumption voucher idea - spend it or lose it. I'm wondering if the Nets Transit Card can be combined with a Limited time credit card as a bonus angpow for everyone in the new year.
P.S. I can hear Shirley in my head as I'm typing this.. "not funny leh..."
P.S.S. The previous post was my 444th post. Lucky I'm not superstitious eh ;)
