Taiwan

Economic and political outline

Economic indicators | Sources of economic information | Political outline

Economic indicators

Through nearly five decades of sound economic management, Taiwan has transformed itself from an underdeveloped, agricultural island to an economic power that is a leading producer of high-technology goods. Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by the authorities. The island runs a large trade surplus, and its foreign reserves are among the world largest. Real GDP growth is forecast to average 4.3% in 2008 and 4.4% in 2009.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	331.13	355.19	364.56	375.65e	398.41e
GDP (constant prices, annual % change)	6.2	4.1	4.7	4.1e	3.8e
GDP per capita (USD)	14,594.20	15,598.63	15,936.09	16,274.09e	17,106.29e
General government balance (in % of GDP)	-2.8	-0.6	-1.1	-2.0e	-1.0e
Inflation rate (%)	1.6	2.3	0.6	1.2e	1.5e
Unemployment rate (% of the labor force)	4.4	4.1	3.9	3.9	4.0
Current Account (billions USD)	18.48	16.02	24.66	25.40e	28.37e
Current Account (in % of GDP)	5.6	4.5	6.8	6.8e	7.1e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	3.9	3.9	4.0

Source:

Main sectors of industry

The agriculture sector contributes nearly 2% to the GDP. Taiwan's main crops are rice, sugarcane, fruit, and vegetables. Taiwan has limited natural resources. The manufacturing industry accounts for 50% of the GDP. Even though traditional industries such as iron and steel, chemical, mechanical still account for almost half the industrial production, but new industries are most dynamic. Taiwan is one of the largest suppliers of semi-conductors, computers and mobile phones in the world. Taiwan is world's largest supplier of computer monitors. Faced by a continuous relocation of labor-intensive industries to countries with cheaper work forces (especially China), Taiwan's future development will rely on further transformation to an advanced technology and service-oriented economy.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	n.c.	n.c.	n.c.
Value added (in % of GDP)	n.c.	n.c.	n.c.
Employment by sector (in % of total employment)	n.c.	n.c.	n.c.

Source: - last available data.

Foreign trade in figures

Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years. Taiwan's economy remains export-oriented, so it depends on an open world trade regime and remains vulnerable to downturns in the world economy. The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment. Taiwan, as an independent economy, became a member of the World Trade Organization (WTO) as Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu ("Chinese Taipei") in January 2002. Taiwan main exports - partners are China (22.5%), Hong Kong (15.7%), US (15%), Japan (7.3%). More information on COMTRADE.

Sources of economic information

Ministries: Ministry of Economic Affairs Council of Agriculture Industrial Development and Investment Center, Ministry of Economic Affairs
Statistical Office: National statistics
Central Bank: National Central Bank
Stock Exchange: Taiwan stock exchange
Online newspapers: The Economist Taiwan
Taiwan news
Search Engines: Gais
Kimo
Yahoo! Taiwan

Political outline

Executive Power: First country of Asia to have elected its president by the universal direct suffrage. President and Vice President are elected on the same ticket by popular vote for four-year terms (eligible for a second term). Election last held 22 March 2008 (next to be held in March 2012). Premier is appointed by the President; Vice premiers are appointed by the President on the recommendation of the Premier.
Legislative Power: Unicameral Legislative Yuan: 113 seats, 73 district members elected by popular vote, 34 at-large members elected on basis of proportion of island wide votes received by participating political parties, 6 elected by popular vote among aboriginal populations; to serve four-year terms
Parties must receive 5% of vote to qualify for at-large seats.
Last elections held in January 2008 (next to be held in January 2012).
Main political parties: Democratic Progressive Party or DPP (TSAI Ing-wen); Kuomintang or KMT (Nationalist Party: WU Po-hsiung); Non-Partisan Solidarity Union or NPSU (CHANG Po-ya); People First Party or PFP (James SOONG)
Current political leaders: Head of government: Premier (President of the Executive Yuan) LIO Chao-hsuan (since 20 May 2008); Vice Premier (Vice President of Executive Yuan) Paul CHIU (CHANG-hsiung) (since 20 May 2008).
Next election dates: March 2012.