Economic Trends/Outlook in Taiwan
After almost five decades of sound economic management, Taiwan has managed to go from an underdeveloped agricultural island, to an economic power that is a leading producer of high-technology goods.
Taiwan has a dynamic capitalist economy in which the authorities' control of investment and foreign trade is gradually diminishing. Highly vulnerable to global economic shocks and fluctuations of the demand, the island was severely affected by the international financial crisis, with its economy contracting by -1.9% in 2009. The recovery was very dynamic in 2010, driven by an increase in exports, which are the engine of Taiwanese growth, as well as by a vast stimulus plan. Estimated at 9.3% in 2010, growth should nevertheless slow down in 2011.
Given that the Taiwanese economy has begun to grow again, the government’s priority is no longer to manage the crisis. A reform of the fiscal system has been announced, together with measures to combat inflation. The country signed a trade agreement with China, in order to avoid becoming marginalized by the ASEAN countries. In the long-term, Taiwan will have to deal with problems of population aging, low birth rate and diplomatic isolation.
The unemployment rate, which reached almost 6% in 2009, dropped to 5.3% in 2010 and should continue to decline in 2011.
|GDP (billions USD)||377.45||430.58e||503.94e||545.46e||590.78e|
|GDP (Constant Prices, Annual % Change)||-1.9||10.8e||5.4e||5.2e||5.1e|
|GDP per Capita (USD)||16,326||18,458e||21,410e||22,967e||24,653e|
|General Government Balance (in % of GDP)||-0.8||1.0e||1.1e||1.1e||1.2e|
|General Government Gross Debt (in % of GDP)||39.9||39.7e||37.9e||36.8e||35.1e|
|Inflation Rate (%)||-0.9||1.0e||2.0e||2.0e||2.0e|
|Unemployment Rate (% of the Labor Force)||5.9||5.2e||4.6e||4.5e||4.3e|
|Current Account (in % of GDP)||11.2e||8.5e||7.7e||7.7e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
The agricultural sector contributes very marginally to the GNP and employs 5% of the workforce. Taiwan's main crops are rice, sugarcane, fruits and vegetables. Taiwan has limited natural resources and croplands are cultivated intensely.
The secondary sector accounts for a significant part of the GNP. Even though traditional industries such as iron and steel, chemical products and mechanics still account for almost half the industrial production, new industries are more dynamic. Taiwan is one of the world's biggest suppliers of semi-conductors, computers and mobile telephones. It is also the world's biggest supplier of computer monitors.
Services contribute about 70% to the GDP and employ slightly under 60% of the workforce.
The country, which has to deal with the continuous relocation of labor-intensive industries to countries where labor is cheaper (especially China), will have to rely on new conversions, in order to move from a high-technology based economy to a services oriented economy.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||-||-||-|
|Value Added (in % of GDP)||-||-||-|
|Value Added (Annual % Change)||-||-||-|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Mostly free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of Economic Affairs
Council of Agriculture
Industrial Development and Investment Center, Ministry of Economic Affairs
- Statistical Office
- Central Bank
National Central Bank
- Stock Exchange
Taiwan stock exchange
- Main Online Newspapers
The Economist Taiwan
Any Comments About This Content? Report It to Us.
No content has been posted to this folder yet.
Be the first to feature your expertise related to Economic Trends/Outlook in Taiwan!
- Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
- By sharing your knowledge you gain more visibility for your profile not only on GlobalTrade.net but across the web
Post your content now by simply clicking on the button below.
Check these folders already populated with content posted by other users:
Click here to find out more about key benefits and instructions for contributing to the site.
Post any content you may have that features your expertise and offers valuable information to the international trade community.
The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.
Check these sample pages for illustration: