Economy of Taiwan

Economy Of Taiwan

Taiwan has a developed capitalist economy that ranks as the 19th largest in the world by Purchasing power parity (PPP), ranks as 18th in the world by gross domestic product(GDP) at purchasing power parity Per capita(person) and 24th in nominal GDP of investment and foreign trade by the Republic of China (ROC) government which governs Taiwan. In keeping with this trend, most large government-owned banks and industrial firms have been privatized. With the Technocracy-centered economic planning under Martial Law until 1987, real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and since World War II, have provided the primary impetus for industrialization. Inflation and unemployment are low; the trade surplus is substantial; and foreign reserves are the world's fourth largest. Agriculture contributes 3% to GDP, down from 35% in 1952, and the service sector makes up 73% of the economy. Traditional labor-intensive industries are steadily being moved off-shore and replaced with more capital- and technology-intensive industries. Economy of Taiwan is an indispensable partner in the Global Value Chains of Electronics Industry. Electronic components and personal computer are two areas of international strength of Taiwan's Information Technology industry. Institute for Information Industry is responsible for the development of IT industry and ICT industry in Taiwan. Directorate-General of Budget, Accounting and Statistics and Ministry of Economic Affairs (Republic of China) release major economic indicators of the economy of Taiwan. Chung-Hua Institution for Economic Research provides economic forecast at the forefront for the economy of Taiwan and authoritatively researches on the bilateral economic relations with ASEAN by The Taiwan ASEAN Studies Center (TASC). Taiwan Stock Exchange is the host to the listed companies of local industries in Taiwan with weighted financial exposures to the FTSE Taiwan Index and MSCI Taiwan Index.

Taiwanese investors and businesses have become major investors in mainland China, Vietnam, Thailand, Indonesia, the Philippines, and Malaysia. 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 from the Asian Financial Crisis of 1997-1999 compared to many of its neighbors. Unlike in neighboring Japan and South Korea, small and medium-sized businesses make up a large proportion of businesses in Taiwan. Taiwan is characterized as one of the Newly industrialized economy since 1970's.

Taiwan is a member of the Asian Development Bank (ADB), the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Taiwan is also an observer at the Organisation for Economic Co-operation and Development (OECD) under the name Chinese Taipei. Taiwan is a member of International Chamber of Commerce as Chinese Taipei. Taiwan's top five trade partners in 2010 are China, Japan, USA, the European Union, and Hong Kong.