Economic overview Taiwan, in 36 editions.

Taiwan has a dynamic capitalist economy with considerable government guidance of investment and foreign trade and partial government ownership of some large banks and industrial firms. Real growth in GNP has averaged about 9% a year during the past three decades. Export growth has been even faster and has provided the impetus for industrialization. Agriculture contributes about 6% 4% to GNP, down from 35% in 1952. Taiwan currently ranks as number 13 among major trading countries. Traditional labor-intensive industries are steadily being replaced with more capital- and technology-intensive industries.

Taiwan has a dynamic capitalist economy with considerable government
guidance of investment and foreign trade and partial government ownership of
some large banks and industrial firms. Real growth in GNP has averaged about
9% a year during the past three decades. Export growth has been even faster
and has provided the impetus for industrialization. Agriculture contributes
about 4% to GNP, down from 35% in 1952. Taiwan currently ranks as number 13
among major trading countries. Traditional labor-intensive industries are
steadily being replaced with more capital- and technology-intensive
industries. Taiwan has become a major investor in China, Thailand,
Indonesia, the Philippines, and Malaysia. The tightening of labor markets
has led to an influx of foreign workers, both legal and illegal.

Taiwan has a dynamic capitalist economy with considerable government
guidance of investment and foreign trade and partial government
ownership of
some large banks and industrial firms. Real growth in GNP
has averaged about
9% a year during the past three decades. Export
growth has been even faster
and has provided the impetus for
industrialization. Agriculture contributes
about 4% to GNP, GDP, down from
35% in 1952. Taiwan currently ranks as number 13
among major trading
countries. Traditional labor-intensive industries are
steadily being
replaced with more capital- and technology-intensive
industries.
Taiwan has become a major investor in China, Thailand,
Indonesia, the
Philippines, Malaysia, and Malaysia. Vietnam. The tightening of labor markets
has led to an influx of foreign workers, both legal and illegal.

Taiwan has a dynamic capitalist economy with considerable government
government guidance of investment and foreign trade and partial government
government ownership of some large banks and industrial firms. Real
growth in GNP
has averaged about 9% a year during the past three
decades. Export
growth has been even faster and has provided the
impetus for
industrialization. Inflation and unemployment are
remarkably low. Agriculture contributes about 4% to GDP, down from
35%
in 1952. Taiwan currently ranks as number 13 among major trading
countries. Traditional labor-intensive industries are steadily being
replaced with more capital- and technology-intensive industries.
Taiwan has become a major investor in China, Thailand, Indonesia, the
Philippines, Malaysia, and Vietnam. The tightening of labor markets
has led to an influx of foreign workers, both legal and illegal.

Taiwan has a dynamic capitalist economy with considerable
considerable government guidance of investment and foreign trade and partial
partial government ownership of some large banks and industrial
firms. Real
growth in GNP GDP has averaged about 9% a year during the
past three
decades. Export growth has been even faster and has
provided the
impetus for industrialization. Inflation and
unemployment are
remarkably low. Agriculture contributes about 4% to GDP, down
from 35%
in 1952. Taiwan currently ranks as number 13 among major trading
trading countries. Traditional labor-intensive industries are
steadily being
replaced with more capital- and technology-intensive industries.
industries. Taiwan has become a major investor in China, Thailand,
Indonesia, the
Philippines, Malaysia, and Vietnam. The tightening of
labor markets
has led to an influx of foreign workers, both legal
and illegal.

Taiwan has a dynamic capitalist economy with
considerable government guidance of investment and foreign trade and by government
officials and partial government ownership of some large banks and industrial
industrial firms. Real growth in GDP has averaged about 9% a year
during the
past three decades. Export growth has been even faster and has
has provided the impetus for industrialization. Inflation and
unemployment are low. Agriculture contributes about less than 4% to GDP, down
down from 35% in 1952. Taiwan currently ranks as number 13 among major
trading countries. Traditional labor-intensive industries are
steadily being moved off-shore and replaced with more capital- and technology-intensive
technology-intensive industries. Taiwan has become a major investor in
China, Thailand,
Indonesia, the Philippines, Malaysia, and Vietnam.
The tightening of
labor markets has led to an influx of foreign
workers, both legal
and illegal.

Taiwan has a dynamic capitalist economy with
considerable gradually decreasing guidance of investment and foreign trade by government
officials government authorities and partial government ownership of some large
banks and
industrial firms. Spillover from the Asian financial crisis
hit Taiwan in the fourth quarter of 1997, wreaking havoc on the stock
and currency markets. While the economy remains sound (the government
forecasts 6% GDP growth for 1998), the New Taiwan Dollar depreciated
20% in 1997. Real growth in GDP has averaged about 9% 8.5% a year
during
the past three decades. Export growth has been even faster and
has
provided the impetus for industrialization. Inflation and
unemployment
are low. Agriculture contributes less than 4% only 3% to GDP,
down from 35% in
1952. Traditional labor-intensive industries are
steadily being moved
off-shore and replaced with more capital- and
technology-intensive
industries. Taiwan has become a major investor in
China, Thailand,
Indonesia, the Philippines, Malaysia, and Vietnam.
The tightening of
labor markets has led to an influx of foreign
workers, both legal and
illegal.

Taiwan has a dynamic capitalist economy with
gradually decreasing guidance of investment and foreign trade by
government authorities and partial government ownership of some large
large banks and industrial firms. Spillover from the Asian financial crisis
hit Taiwan in the fourth quarter of 1997, wreaking havoc on the stock
and currency markets. While the economy remains sound (the government
forecasts 6% GDP growth for 1998), the New Taiwan Dollar depreciated
20% in 1997. Real growth in GDP has averaged
about 8.5% a year during
the past three decades. Export growth has
been even faster and has
provided the impetus for industrialization.
Inflation and unemployment
are low. low, and foreign reserves are the
world's third largest. Agriculture contributes only less than 3% to GDP,
down from 35% in
1952. Traditional labor-intensive industries are
steadily being moved
off-shore and replaced with more capital- and technology-intensive
technology-intensive industries. Taiwan has become a major investor
in China, Thailand,
Indonesia, the Philippines, Malaysia, and
Vietnam. The tightening of
labor markets has led to an influx of
foreign workers, both legal and
illegal. Because of its conservative
financial approach and its entrepreneurial strengths, Taiwan
suffered little compared with many of its neighbors from "the Asian
flu" in 1998.

Taiwan has a dynamic capitalist economy with
gradually decreasing guidance of investment and foreign trade by
government authorities and partial government ownership of authorities. In keeping with this trend, some
large government-owned banks and industrial firms. firms are being privatized. Real growth in GDP has averaged
about 8.5% a year 8% during the past three decades. Export growth has
been Exports have grown even faster and has have provided the primary impetus for industrialization.
Inflation and unemployment are low, low; the trade surplus is substantial; and foreign reserves are the
world's third largest. Agriculture contributes less than 3% to GDP,
down from 35% in 1952. Traditional labor-intensive industries are
steadily being moved off-shore and replaced with more capital- and
technology-intensive industries. Taiwan has become a major investor
in China, Thailand, Indonesia, the Philippines, Malaysia, and
Vietnam. The tightening of labor markets has led to an influx of
foreign workers, both legal and illegal. Because of its conservative
financial approach and its entrepreneurial strengths, Taiwan
suffered little compared with many of its neighbors from "the the Asian
flu" financial crisis in 1998. 1998-99. Growth in 2000 should pick up a bit from 1999, backed by expansion in domestic consumption, exports, and private investment.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and have provided the primary impetus for industrialization. Inflation and unemployment are low; the trade surplus is substantial; and foreign reserves are the world's third fourth largest. Agriculture contributes 3% to GDP, down from 35% in 1952. Traditional labor-intensive industries are steadily being moved off-shore offshore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam. The tightening of labor markets has led to an influx of foreign workers, both legal and illegal. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998-99. Growth in 2000 should pick up a bit from 1999, backed by expansion 2001 will depend largely on conditions in domestic consumption, exports, Taiwan's export markets and private investment. may be about 5%.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and have provided the primary impetus for industrialization. Inflation and unemployment are low; the The trade surplus is substantial; substantial, and foreign reserves are the world's fourth third largest. Agriculture contributes 3% 2% to GDP, down from 35% in 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam. The tightening of labor markets has led to an influx of foreign workers, both legal and illegal. Vietnam; 50,000 Taiwanese businesses are established in China. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998-99. Growth The global economic downturn, however, combined with poor policy coordination by the new administration and increasing bad debts in 2001 will depend largely on conditions the banking system, pushed Taiwan into recession in Taiwan's export markets and may be about 5%. 2001, the first whole year of negative growth since 1947. Unemployment also reached a level not seen since the 1970s oil crisis.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about 8% during the past three decades. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to GDP, down from 35% 32% in 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced with more capital- and technology-intensive industries. While Taiwan has become is a major investor in China, Thailand, Indonesia, throughout Southeast Asia, China has become the Philippines, Malaysia, largest destination for investment and Vietnam; 50,000 Taiwanese businesses are established in China. has overtaken the US to become Taiwan's largest export market. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998-99. 1998. The global economic downturn, however, combined with poor problems in policy coordination by the new administration and increasing bad debts in the banking system, pushed Taiwan into recession in 2001, the first whole year of negative growth since 1947. ever recorded. Unemployment also reached record levels. Output recovered moderately in 2002 in the face of continued global slowdown, fragile consumer confidence, and bad bank loans. Growing economic ties with China are a level not seen since dominant long-term factor. Exports to China - mainly parts and equipment for the 1970s oil crisis. assembly of goods for export to developed countries - drove Taiwan's economic recovery in 2002.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to GDP, down from 32% in 1952. While Taiwan is a major investor throughout Southeast Asia, China has become the largest destination for investment and has overtaken the US to become Taiwan's largest export market. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998. The global economic downturn, combined with problems in policy coordination by the administration and bad debts in the banking system, pushed Taiwan into recession in 2001, the first year of negative growth ever recorded. Unemployment also reached record levels. Output recovered moderately in 2002 in the face of continued global slowdown, fragile consumer confidence, and bad bank loans. Growing economic ties with China are a dominant long-term factor. Exports to China - mainly parts and equipment for the assembly of goods for export to developed countries - drove Taiwan's economic recovery in 2002. Although the SARS epidemic, Typhoon Maemi, corporate scandals, and a drop in consumer spending caused GDP growth to contract to 3.2% in 2003, increasingly strong export performance kept Taiwan's economy on track, and the government expects Taiwan's economy to grow 4.1% in 2004.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes less than 2% to GDP, down from 32% in 1952. While Taiwan is a major investor throughout Southeast Asia, Asia. China has become the largest destination for investment and has overtaken the US to become Taiwan's largest export market. Because of its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little compared with many of its neighbors from the Asian financial crisis in 1998. The global economic downturn, combined with problems in policy coordination by the administration and bad debts in the banking system, pushed Taiwan into recession in 2001, the first year of negative growth ever recorded. Unemployment also reached record levels. Output recovered moderately in 2002 in the face of continued global slowdown, fragile consumer confidence, and bad bank loans. loans; and the essentially vibrant economy pushed ahead in 2003-04. Growing economic ties with China are a dominant long-term factor. Exports factor, e.g., exports to China - mainly of parts and equipment for the assembly of goods for export to developed countries - drove Taiwan's economic recovery in 2002. Although the SARS epidemic, Typhoon Maemi, corporate scandals, and a drop in consumer spending caused GDP growth to contract to 3.2% in 2003, increasingly strong export performance kept Taiwan's economy on track, and the government expects Taiwan's economy to grow 4.1% in 2004. countries.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large large, government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes less than 2% to GDP, down from 32% in 1952. Taiwan is a major investor throughout Southeast Asia. China has overtaken the US to become Taiwan's largest export market. Because market and, in 2005, Taiwan's third-largest source of its conservative financial approach imports after Japan and its entrepreneurial strengths, the US. Taiwan suffered little compared with many of its neighbors has benefited from the Asian financial crisis in 1998. The global cross-Strait economic downturn, combined with problems in policy coordination by the administration integration and bad debts in the banking system, pushed Taiwan into recession a sharp increase in 2001, the first year of negative world demand to achieve substantial growth ever recorded. Unemployment also reached record levels. Output recovered moderately in 2002 in the face of continued global slowdown, fragile consumer confidence, and bad bank loans; its export sector and the essentially vibrant economy pushed ahead in 2003-04. Growing economic ties with China are a dominant long-term factor, e.g., exports to China seven-year-high real GDP growth of parts 6.1% in 2004. However, excess inventory, higher international oil prices, and equipment rising interest rates dampened consumption in developed markets, and GDP growth dropped to 3.8% in 2005. The service sector, which accounts for the assembly 69% of goods for export Taiwan's GDP, has continued to developed countries. expand, while unemployment and inflation rates have declined.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government authorities. In keeping with this trend, some large, government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The island runs a trade surplus is substantial, surplus, and foreign reserves are the world's third largest. Agriculture contributes less than 2% to GDP, down from 32% in 1952. Taiwan is a major investor throughout Southeast Asia. Despite restrictions on cross-strait links, China has overtaken the US to become Taiwan's largest export market and, in 2005, Taiwan's third-largest 2006, its second-largest source of imports after Japan and Japan. China is also the US. Taiwan has benefited from cross-Strait economic integration and a sharp increase in world demand to achieve substantial growth island's number one destination for foreign direct investment. Strong trade performance in its export sector and a seven-year-high real 2006 pushed Taiwan's GDP growth of 6.1% in 2004. However, excess inventory, higher international oil prices, rate above 4%, and rising interest rates dampened consumption unemployment is below 4%. Consumer spending recovered following a slowdown early in developed markets, and GDP growth dropped 2006, when banks tightened lending to 3.8% address a sharp increase in 2005. The service sector, which accounts for 69% of Taiwan's GDP, has continued to expand, while unemployment and inflation rates have declined. delinquent consumer debt.

Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by government the authorities. In keeping with this trend, some large, government-owned state-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The island runs a large trade surplus, and its foreign reserves are among the world's third largest. Despite restrictions on cross-strait links, China has overtaken the US to become Taiwan's largest export market and, in 2006, and its second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Strong trade performance in 2006 2007 pushed Taiwan's GDP growth rate above 4%, 5%, and unemployment is below 4%. Consumer spending recovered following a slowdown early in 2006, when banks tightened lending to address a sharp increase in delinquent consumer debt.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade by the authorities. trade. In keeping with this trend, some large, state-owned banks and industrial firms are being have been privatized. Exports have provided the primary impetus for industrialization. The island runs a large trade surplus, and its foreign reserves are among the world's largest. Despite restrictions on Recently opened cross-strait links, travel, transportation, and tourism links are likely to increase Taiwan and China's economic interdependence. In 2008 China has overtaken overtook the US to become Taiwan's largest export market and its second-largest source of imports imports, after Japan. China is also the island's number one destination for foreign direct investment. Strong trade performance Growth fell to 0.1% in 2007 pushed Taiwan's GDP growth rate above 5%, and unemployment is below 4%. 2008 because of the global slowdown.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics and machinery, generate about 70% of Taiwan's GDP growth, and have provided the primary impetus for economic development. This heavy dependence on exports makes exposes the economy vulnerable to upturns and downturns in world demand. In 2009, Taiwan's GDP fell by contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew more than 8% in 2010, 10.5%, as exports returned to the level of previous years. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration, largely for reasons because of diplomacy. its diplomatic status. Taiwan's birth Total Fertility rate of only 1.2 just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.8% 10.9% of the island's total population as of the end of 2009. 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since President MA Ying-jeou took office in May 2008, cross-Strait economic ties have increased significantly. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taipei Taiwan has focused much of its economic recovery effort efforts on improving the cross-Strait economic integration. relationship. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the Mainland's mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Taiwan and the mainland in June 2010 signed the landmark Economic Cooperation Framework Agreement (ECFA), an agreement similar that the Taiwan authorities hope will eventually lead to a free-trade agreement deal arrangement that will increase cross-Strait economic ties by lowering tariffs on a number of goods. Taiwan's goverment has goods and by reducing market access barriers for services. The Taiwan authorities have said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners and they announced the beginning of that formal negotiations on such towards an economic cooperation agreement with Singapore would begin in August. 2011. Closer economic links with the mainland brings greater opportunities for the Taiwan economy, but also poses new challenges. For example, FDI in China has resulted in Chinese import substitution away from Taiwan's exports and a restriction of potential job creation in Taiwan.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics and electronics, machinery, generate about 70% of Taiwan's GDP growth, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to upturns and downturns fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.5%, 10.9%, as exports returned to the level of previous years. years, and in 2011, grew 4%. However, 2012 growth fell to just 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration, largely integration - with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010 - in part because of its diplomatic status. Follow-on components of ECFA, including deals on trade in goods and services, have yet to be completed. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, and talks with Singapore on a deal began in 2010. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, surplus largely because of its surplus with China, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since President MA Ying-jeou took office in May 2008, cross-Strait economic ties have increased significantly. Since 2005 In 2006 China has overtaken overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan has focused much of its efforts on improving the cross-Strait economic relationship. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Taiwan and the mainland in June 2010 signed the landmark Economic Cooperation Framework Agreement (ECFA), an agreement that the Taiwan authorities hope will eventually lead to a free-trade arrangement that will increase cross-Strait economic ties by lowering tariffs on a number of goods and by reducing market access barriers for services. The Taiwan authorities have said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners and they announced that formal negotiations towards an economic cooperation agreement with Singapore would begin in 2011. Closer economic links with the mainland brings bring greater opportunities for the Taiwan economy, but also poses new challenges. For example, FDI in challenges as the island becomes more economically dependent on China has resulted in Chinese import substitution away from Taiwan's exports and a restriction of potential job creation in Taiwan. while political differences remain unresolved.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, 1.8%, due primarily to a 20% 13.1% year-on-year decline in exports. In 2010 GDP grew 10.9%, 10.7%, as exports returned to the level of previous years, and in 2011, grew 4%. However, 2012 4.0%. In 2012, however, growth fell to just 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration - with the exception of except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010 - 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Follow-on Negotiations continue on such follow-on components of ECFA, including deals on ECFA regarding trade in goods and services, have yet to be completed. services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, and talks which Taiwan subsequently launched with Singapore on a deal began in 2010. and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% 11.2% of the island's total population as of 2011. 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fourth fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic status. relations—and in November inked a trade pact with Singapore. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key dispute resolution mechanism; a trade partners, which Taiwan subsequently launched with Singapore and New Zealand. in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth sixth largest, behind China, Japan, Saudi Arabia, Russia, and Russia. Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from Taiwan since 2009 has gradually loosened rules governing Chinese investment on the mainland's financial firms and institutional investors, island, and providing new opportunities has also secured greater market access for Taiwan financial firms to operate its investors in China. the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.
Free trade agreements have proliferated in East Asia over the past several years, and following years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and relations - and, in November November, inked a trade pact with Singapore. Negotiations continue on However, follow-on components of ECFA regarding the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and a dispute resolution mechanism; resolution, have stalled. In early 2014, the government bowed to public demand and proposed a trade in services agreement is under review new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the legislature. air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.
Taiwan's Total Fertility total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting expected to account for 11.2% nearly 20% of the island's total population as of 2012. by 2025.
The island runs a large overall trade surplus surplus, largely because of its surplus with China, and its foreign reserves are the world's sixth fifth largest, behind those of China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop has helped Taiwan develop into a local RMB hub.
Closer economic links with the mainland bring greater opportunities for the Taiwan economy, Taiwan’s economy but also poses pose new challenges as the island becomes more economically dependent on China while at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of on investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.
Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as of the conclusion of President MA enters his MA's second and final full year term in office. May 2016. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks. networks, and has also expressed interest in Taiwan joining the Trans-Pacific Partnership.
Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.
The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB Renminbi (RMB) and the New Taiwan dollar Dollar across the Strait, which has helped Taiwan develop into a local RMB hub.
Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic unresolved and China’s economic issues, while pushing aside the debates over trade liberalization that were a hallmark growth is slowing. Domestic economic issues loomed large in public debate ahead of MA’s tenure. The media focused on the divide between Taiwan’s “haves” 16 January 2016 presidential and “have nots,” providing extensive coverage of public frustration with legislative elections, including concerns about stagnant wages, skyrocketing high housing prices, youth unemployment, job security, and the difficulty of finding decent entry-level jobs. financial security in retirement.

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance on investment and foreign trade. Exports, led that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals have provided the primary impetus for economic development. petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in world global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.
Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, November of that year, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as of the conclusion of uncertain. President MA's second and final term TSAI since taking office in May 2016. MA portrayed ECFA as Taiwan’s key to 2016 has promoted greater participation in East Asia’s free trade networks, economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership. Partnership as well as bilateral trade deals with partners such as the US.
Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.
The island runs a trade surplus, largely because of its surplus with China, many economies, including China and the US, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 2006, China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in on the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese Renminbi renminbi (RMB) and the New Taiwan Dollar dollar across the Strait, which has helped Taiwan develop into a local RMB hub.
Closer economic links with the mainland bring opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the 16 January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.
Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November of that year, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US.
These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors. Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.
The island runs a trade surplus with many economies, including China and the US, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006, China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment and has also secured greater market access for its investors on the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese renminbi (RMB) and the New Taiwan dollar across the Strait, which has helped Taiwan develop into a local RMB hub.
Closer economic links with the mainland bring opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic President TSAI’s administration has made little progress on the domestic economic issues that loomed large in public debate ahead of the January 2016 presidential and legislative elections, when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.

Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.
Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November of that year, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.
Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.
The island runs a trade surplus with many economies, including China and the US, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006, China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment and has also secured greater market access for its investors on the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese renminbi (RMB) and the New Taiwan dollar across the Strait, which has helped Taiwan develop into a local RMB hub.
Closer economic links with the mainland bring opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.