World Business | Asia | Asia Business | Taiwan

Economy - overview:
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. Taiwan is a major investor throughout Southeast Asia. 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. 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; 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 of parts and equipment for the assembly of goods for export to developed countries.
 

Agriculture - Products
rice, corn, vegetables, fruit, tea; pigs, poultry, beef, milk; fish

Airlines
Airlines in Asia
Airlines Worldwide

Airports
Airports in Asia
Airports Worldwide

Country Budget
revenues: $67.41 billion
expenditures: $76.7 billion, including capital expenditures of $14.4 billion (2004 est.)

Currency (code): new Taiwan dollar (TWD)

Currency Exchange Rates
new Taiwan dollars per US dollar - 33.422 (2004), 34.418 (2003), 34.575 (2002), 33.8 (2001), 33.09 (2000)

Fiscal Year
1 July - 30 June (up to FY98/99); 1 July 1999 - 31 December 2000 for FY00; calendar year (after FY00)

GDP (Gross Domestic Product)
GDP (purchasing power parity):  $576.2 billion (2004 est.)
GDP - real growth rate:  6% (2004 est.)
GDP - per capita:  purchasing power parity - $25,300 (2004 est.)
GDP - composition by sector:
agriculture: 1.7%
industry: 30.9%
services: 67.4% (2004 est.)

Imports / Exports
Exports:  $170.5 billion f.o.b. (2004 est.)
Exports - commodities:  computer products and electrical equipment, metals, textiles, plastics and rubber products, chemicals (2002)
Exports - partners:  China, including Hong Kong 37%, US 16%, Japan 7.7% (2004)

Imports:  $165.4 billion f.o.b. (2004 est.)
Imports - commodities:  machinery and electrical equipment 44.5%, minerals, precision instruments (2002)
Imports - partners:  Japan 26%, US 13%, China, including Hong Kong 11%, South Korea 6.9% (2004)

Industries
electronics, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force:  10.22 million (2004 est.)
Labor force - by occupation:  agriculture 8%, industry 35%, services 57% (2001 est.)
Unemployment rate:  4.5% (2004 est.)