Taipei - Economy

Economy

As the capital of Taiwan, Taipei has been at the center of rapid economic development in the country and has now become one of the global cities in the production of high technology and its components. This is part of the so-called Taiwan Miracle which has seen dramatic growth in the city following foreign direct investment in the 1960s. Taiwan is now a creditor economy, holding one of the world's largest foreign exchange reserves of over US$352 billion as of February 2010.

Despite the Asian financial crisis, the economy continues to expand at about 5% per year, with virtually full employment and low inflation. As of 2007, the nominal GDP of the core city of Taipei has accrued to an amount of nearly US$160 billion, while the metro region of Taipei has a GDP (nominal) of around US$260 billion, a record that would rank it 13th among world cities by GDP. The GDP per capita of Taipei is US$48,400, and the second highest in Asia behind Tokyo, which has a GDP per capita of US$65,453. If outskirts, neighboring cities, and townships are taken into account, the GDP per capita would fall to US$25,000.

Taipei and its environs have long been the foremost industrial area of Taiwan, consisting of industries of the secondary and tertiary sectors. Most of the country's important factories producing textiles and apparel are located there; other industries include the manufacture of electronic products and components, electrical machinery and equipment, printed materials, precision equipment, and foods and beverages. Such companies include Shihlin Electric, CipherLab and Insyde Software. Shipbuilding, including yachts and other pleasure craft, is done in the port of Keelung northeast of the city.

Services, including those related to commerce, transportation, and banking, have become increasingly important. Tourism is a small but significant component of the local economy with international visitors totaling almost 3 million in 2008. Taipei has many top tourist attractions and contributes a significant amount to the US$6.8 billion tourism industry in Taiwan. National brands such as ASUS, Chunghwa Telecom, Mandarin Airlines, Tatung, and Uni Air, D-Link are headquartered in Taipei City.