| Abstract | The year 1996 was definitely a hard one for Taiwan's economy. The traditional red envelopes (hong bao), which are passed out by company bosses at the end of the year, were not as bulky as usual, and economic activity in the country was rather morose. The growth rate was 5.7%, the first time it has fallen under six per cent since 1985 (with the exception of 1990). This follows on a decade of growth which started out at 10% and more recently fluctuated between six and seven per cent. It is certain that factors other than economic ones have played a big part in the year's poor results, and most of the local economic institutions are promising an increase in the GDP of something like 6.2% in 1997. |
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